2015 (1) TMI 331 - AT - Central Excise

Small scale exemption notification - Revenue wants to deny the benefit of small scale exemption notification on the ground that the appellant manufacturer has not filed any necessary declaration for availing the benefit of the Notification - Benefit of the Notification No. 181/88-C.E., dated 13-5-1988 - Held that - it cannot be said that non-filing of declaration will disentitle the appellant manufacturer for claiming the benefit of small scale exemption notification. Hence we find no merit in the appeal filed by the Revenue and the same is dismissed. In the appeal filed by the appellant manufacturer, the claim is only in respect of credit of duty paid on inputs utilized in the manufacture after crossing the limit of clearance under small scale exemption Notification. The appellant manufacturer is entitled for credit of duty paid on inputs by producing the duty paying document. The appellant manufacturer is directed to produce the duty paying document within a period of 8 weeks from the date of receipt of this order. On production of such document, the adjudicating authority will decide the admissibility of credit, after affording an opportunity of hearing to the appellant manufacturer - Matter remanded back - Decided in favour of assessee.

Summary

Issues:
1. Denial of benefit of Notification No. 181/88-C.E.
2. Entitlement for the benefit of small scale exemption Notification No. 175/86.
3. Denial of credit of duty paid on inputs.
4. Appeal by Revenue against allowing small scale exemption.

Analysis:

1. The Tribunal considered the case where the appellant manufacturer was denied the benefit of Notification No. 181/88-C.E. The matter was remanded to the adjudicating authority to assess the claim for the small scale exemption Notification No. 175/86. The adjudicating authority confirmed a demand in excess of the exemption limit but denied credit for duty paid inputs due to lack of records. The appellant filed an appeal against this decision.

2. The Revenue also appealed against the decision allowing the small scale exemption. The Revenue argued that the appellant did not file the necessary declaration for the exemption, citing a Supreme Court decision. However, the Tribunal noted that the appellant had made an alternative plea during the hearing, indicating that the failure to file a declaration should not disqualify them from claiming the small scale exemption. The appeal by the Revenue was dismissed.

3. In the appellant's appeal, the issue was regarding the credit of duty paid on inputs after exceeding the small scale exemption limit. The Tribunal decided that the appellant was entitled to this credit upon producing the necessary duty paying documents. The appellant was directed to submit these documents within 8 weeks for the adjudicating authority to assess the credit's admissibility after a hearing.

4. Ultimately, the Tribunal dismissed the Revenue's appeal against allowing the small scale exemption and directed the appellant to provide the required documents for the credit of duty paid on inputs. The decision highlighted the importance of fulfilling procedural requirements for exemptions and the necessity of providing supporting documents for claiming credits under the law.