2016 (9) TMI 483 - AT - Central Excise

SSI Exemption - Demand alongwith interest and penalty - utilized cenvat credit on inputs used in the manufacture of specified goods cleared before the aggregate value of clearance of specified goods exceeded rupees one crore - failed to fulfill the condition of the Notification No. 8/2003-CE dated 01.03.2003 - Held that - the goods cleared by the appellant for home consumption, as no availed cenvat credit. Therefore, by following the decision of Hon ble Apex Court in the case of Nabulae Health Care Ltd. 2015 (11) TMI 95 - SUPREME COURT wherein the Hon ble Apex Court has held that the assessee is entitled to benefit of exemption notification 8/2003-CE dated 01.03.2003, the impugned order is set aside and the appellant is entitled to the benefit of Notification No. 8/2003-CE. - Decided in favour of assessee

Summary

Issues:
1. Appeal against demand of duty of excise, interest, and penalty.
2. Availing exemption under Notification No. 8/2003-CE.
3. Utilization of cenvat credit on inputs for specified goods.
4. Interpretation of relevant notifications for exemption eligibility.

Analysis:
1. The appellant appealed against the demand of duty of excise, interest, and penalty imposed by the impugned order. The appellant, engaged in manufacturing medicines under their own and other brand names, was investigated for availing exemption under Notification No. 8/2003-CE dated 01.03.2003. The appellant cleared goods affixed with their brand name and others' brand names, availing cenvat credit on inputs used. The revenue alleged non-fulfillment of conditions under para 2 of the said notification due to exceeding the aggregate value of clearances before availing exemption.

2. The appellant's contention was supported by the case of Nebulae Health Care Ltd., where the Hon'ble Apex Court allowed exemption under the same notification. The revenue, however, relied on the decision in the case of Ramesh Food Products. The Tribunal analyzed the scheme of the notifications and held that clearances for home consumption bearing third parties' brand names are excluded from exemption. The Tribunal concluded that the appellant, not availing cenvat credit for goods cleared for home consumption, is entitled to the benefit of the notification.

3. The Tribunal referenced the Apex Court's decision in Nebulae Health Care Ltd., emphasizing that branded goods manufactured by the appellant for third parties do not fall under the exemption. The Tribunal distinguished the case from Ramesh Food Products, stating that each notification must be construed strictly on its terms. Consequently, the Tribunal set aside the impugned order, allowing the appellant's appeal and granting the benefit of Notification No. 8/2003-CE dated 01.03.2003.

4. In conclusion, the Tribunal held that the appellant fulfilled the conditions for exemption under the notification, similar to the Nebulae Health Care Ltd. case. Therefore, the impugned order was set aside, and the appellant was deemed entitled to the benefits under Notification No. 8/2003-CE dated 01.03.2003, with consequential relief granted.