2016 (9) TMI 885 - AT - Central Excise

SSI exemption - Notification No. 8/2003-CE dated 01.03.2003 - Refund claim - Central excise duty paid by mistake by including non ISI submersible pumps i.e. non BIS pumps in the overall turnover - Held that - it is found that the notification is available to all goods of Chapter 84 except power driven pumps not conforming to BIS standards. We note that for the purpose of determining the first clearances upto an aggregate value not existing ₹ 150 lakhs the goods covered by the said notification only can be considered. Since non BIS pumps are not covered by the notification and the appellants submitted that they are clearing the same on payment of duty, the turnover of the same is not to be considered for arriving at the threshold exemption limit. - Decided in favour of appellant with consequential relief

Summary

Issues:
1. Interpretation of Notification No. 8/2003-CE regarding small scale exemption for submersible pumps.
2. Eligibility of non BIS submersible pumps for small scale exemption.
3. Rejection of refund claim by original and appellate authorities.

Analysis:
1. The appellant, engaged in manufacturing submersible pumps, claimed a refund of Central Excise duty under Notification No. 8/2003-CE due to mistakenly including non BIS submersible pumps in their turnover calculation for small scale exemption. The claim was rejected by the authorities.

2. The appellant argued that the notification exempts goods conforming to BIS standards and not applicable to power-driven pumps not conforming to BIS. As the appellant manufactured both BIS and non BIS pumps, they contended that turnover calculation should exclude non BIS pumps as they were not covered by the notification.

3. The Tribunal analyzed the notification and concluded that it applies to all goods of Chapter 84 except power-driven pumps not conforming to BIS standards. Since non BIS pumps were not covered by the notification and the appellant paid duty on them, their turnover should not be considered for the exemption limit calculation. The Tribunal allowed the appeal, stating that only goods specified in the notification's annexure should be considered for calculating turnover.

Conclusion:
The Tribunal ruled in favor of the appellant, allowing the appeal and granting consequential relief. The judgment clarified the scope of Notification No. 8/2003-CE regarding small scale exemption for submersible pumps, emphasizing the exclusion of non BIS pumps from the turnover calculation for eligibility.