2016 (1) TMI 149 - AT - Central Excise

Denial of SSI Exemption - benefit of Notification No.9/2001 - Held that - Notification No. 8/2001 dated 1.3.2001, w.e.f. 1.4.2001 the goods falling under Chapter 93 were excluded from the scope of SSI benefit. It is also not disputed that the goods produced by the appellant are classifiable under Chapter 93. Their goods are, therefore, not eligible for the benefit of Notification No. 8/2001 from 1.4.2000 onwards. The SSI Notification No.8/2001 was amended vide Notification No.47/2001-CE dated 1st October 2001. By the said amendment, parts falling under Heading 93.06 or 93.07 were again made eligible for the benefit of the SSI exemption. However, the said exemption notification was not made with retrospective effect but was to come in force from 1st October 2001 only - appellant was not eligible for the benefit of Notification No.8/2001-CE dated 1.3.2001. The appellant has contended about the speech of the Finance Minister. We find that in the notification issued by the Government, there is no such mention that only parts which are meant for private use will get excluded. Even after the amendment on 1st October, there is no concept of use by the private person or by the Defence - Decided against assessee.

Summary

Issues:
1. Eligibility for SSI exemption notification for goods under Chapter Heading 9306.00.
2. Interpretation of the amendment excluding goods under Chapter 93 from SSI benefit.
3. Retrospective effect of the amendment.
4. Applicability of Notification No.9/2001 to SSI units.

Analysis:
1. The appellant, a manufacturer of goods falling under Chapter Heading 9306.00, availed the SSI exemption notification until 2001 when the amendment excluded goods under Chapter 93 from the scope of the exemption. The dispute pertains to the period from 1st July 2001 to 30th September 2001.

2. The appellant argued that since they supplied parts to a Government Undertaking for use by the Ministry of Defence, not for private use, they should be eligible for the SSI notification benefit. They contended that the amendment should be considered clarificatory and have retrospective effect. However, the Tribunal noted that the amendment excluded goods under Chapter 93 without specifying private use, thereby rejecting the appellant's argument.

3. The Tribunal highlighted that the amendment, through Notification No.47/2001-CE dated 1st October 2001, reinstated parts falling under Heading 93.06 or 93.07 for SSI exemption but with no retrospective effect, effective from 1st October 2001 only. Consequently, the appellant was not eligible for the SSI benefit from 1st April 2001 to 30th September 2001.

4. Regarding the appellant's request for the extension of Notification No.9/2001 benefits, the Tribunal clarified that since the scope of Notification 9/2001 mirrored that of Notification 8/2001, and the appellant was ineligible for the latter, they could not avail the former. Consequently, the appeal was dismissed on 7th September 2015.