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2017 (1) TMI 597 - AT - Central ExciseSSI exemption - denial of benefit of N/N. 8/2003-CE dated 1.3.2003 - value of clearances exceeding threshold limit - Held that - there is no dispute that the threshold limit of the aggregate value of Rupees three hundred lakhs was exceeded due to addition of traded goods. If the value of the traded goods is excluded than the aggregate value will remain below the threshold limit of Rupees three hundred lakhs. The Notification No. 8/2003-CE for the purpose of SSI exemption is available only for manufactured goods and not for trading goods - the exemption Notification No.8/2003 was wrongly denied by adding the value of the traded goods - appeal allowed - decided in favor of assessee.
Issues: Calculation of aggregate value for exemption eligibility under Notification No. 8/2003-CE.
Analysis: The appellant, engaged in manufacturing paints, varnishes, and thinners, availed exemption under Notification No. 8/2003-CE. The dispute arose when the authorities claimed the threshold limit of Rupees Three Hundred Lakhs was exceeded due to the inclusion of traded goods in the aggregate value calculation for the preceding financial year. The appellant argued that only goods manufactured by them should be considered for the calculation, excluding the value of traded goods. The Revenue, however, supported the findings of the impugned order. Upon careful consideration, the Tribunal observed that the eligibility for the exemption under Notification No. 8/2003-CE pertains only to manufactured goods, not traded goods. It was established that if the value of traded goods is excluded, the aggregate value would fall below the threshold limit. Therefore, the Tribunal concluded that for calculating the aggregate value, only goods manufactured by the appellant should be taken into account, not the traded goods. Consequently, the Tribunal set aside the impugned order and allowed the appeal, ruling in favor of the appellant. In conclusion, the Tribunal's decision clarified that the exemption under Notification No. 8/2003-CE is applicable solely to manufactured goods, and the value of traded goods should not be considered when calculating the aggregate value for exemption eligibility. By emphasizing this distinction, the Tribunal rectified the denial of the exemption based on the inclusion of traded goods in the calculation, ultimately granting relief to the appellant in this case.
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