2016 (3) TMI 480 - AT - Central Excise

SSI Exemption - Value in the first clearance as computed in the first paragraph of Notification No. 08/2001 - Held that - Clearance upto ₹ 1 crore beginning with 01/05/2001 in the remaining part of the financial year shall be exempted from excise duty. The use of word upto in the classification clearly points to the fact that it can be less than ₹ 1 crore. The said clarification also states that clearances of garments already effected upto 30/04/2001 shall be taken into account for computing full or partially exemption limit of ₹ 1 crore under Notification No. 08/2001-CE. In these circumstances, there is no doubt left as to how the first clearances are to be calculated. In the instant case the appellants took registration on 29/05/2001 and therefore, it is not possible for the revenue to know what was their clearance during the month of April 2001. The notification as amended was very clear and unambiguous. In the era of self assessment, it is the responsibility of the assessee to correctly determine the duty as per law. It is seen that the appellant failed to do so in this case. The appeal filed by the appellant is dismissed.

Summary

Issues:
- Interpretation of Notification No. 08/2001-CE dated 01/03/2001 as amended by Notification No. 23/2001-CE dated 30/04/2001.
- Inclusion of value of clearances bearing brand name of others for calculating aggregate value under the exemption scheme.
- Applicability of CBE&C Circular No. B.4/5/2001-TRU dated 30/04/2001.
- Barred by limitation for issuing show-cause notice.

Analysis:
1. The case involved the interpretation of Notification No. 08/2001-CE amended by Notification No. 23/2001-CE regarding the exemption scheme for clearances of goods under Chapter 62. The issue was whether the value of clearances bearing the brand name of others should be included in calculating the aggregate value for exemption.

2. The appellant argued that clearances bearing brand names ineligible for exemption should not be included in the calculation. They relied on the CBE&C Circular stating the exemption limit of up to Rs. 1 crore from 01/05/2001. The appellant contended that the show-cause notice issued in 2003 was time-barred due to the department's prior knowledge.

3. The Tribunal analyzed the notifications and the circular, emphasizing that clearances between 01/04/2001 and 30/04/2001 under Chapter 62 were to be considered for calculating the aggregate value at a nil rate of duty for the financial year 2001-2002. The Tribunal found the notifications and circular to be clear in their intent.

4. The Tribunal referred to legal precedents to establish that clearances under brand names of others were not to be included in calculating the first clearance. However, the Tribunal noted that the earlier decisions were based on different notifications without provisions similar to Notification No. 08/2001 as amended.

5. The appellant's argument of no willful misstatement or suppression of facts was countered by the Tribunal, citing the responsibility of the assessee in self-assessment. The Tribunal dismissed the appeal, stating that the appellant failed to correctly determine the duty as per law, and the revenue was not aware of their clearances during April 2001 due to registration after the period in question.

6. Ultimately, the Tribunal upheld the demand raised by the lower authorities, emphasizing the clarity of the notifications and the appellant's responsibility in determining duty correctly. The appeal was dismissed, and the judgment was pronounced on 17.2.2016.