2017 (4) TMI 216 - AT - Central Excise

SSI exemption - valuation - whether for the purpose of SSI exemption under N/N. 8/99-CE dated 28-2-1999 value of goods cleared under exemption N/N. 5/99-CE has to be included in the threshold limit of aggregate value provided in exemption Notification No. 8/99-CE? Held that - it is clear that value of only those clearances shall not be taken into account for the purpose determining aggregate value of clearances for home consumption, which are other than exemption based on quantity on value of clearances. As per N/N. 5/99-CE under Sr. No. 70 it can be seen that exemption is based on value of clearances therefore the goods cleared under N/N. 5/99-CE cannot be excluded for determining aggregate value of clearances of home consumption in terms of N/N. 8/99-CE - appeal dismissed - decided against appellant.

Summary

Issues:
Whether the value of goods cleared under exemption Notification No. 5/99-CE should be included in the threshold limit of aggregate value for SSI exemption under Notification No. 8/99-CE.

Analysis:
The case involved a dispute regarding the inclusion of the value of goods cleared under exemption Notification No. 5/99-CE in the threshold limit of aggregate value for availing SSI exemption under Notification No. 8/99-CE. The appellant argued that storage tanks with a capacity of less than 300 liters were exempt from excise duty under Notification 5/99-CE. They contended that the clearance value of goods exempted from excise duty should not be included in determining the aggregate value for the purpose of exemption under Notification 8/99-CE. The appellant cited case laws to support their argument.

On the other hand, the Revenue represented by the Assistant Commissioner argued in favor of the findings of the impugned order. The Tribunal carefully considered the submissions from both sides and examined the relevant provisions of the notifications in question. Notification No. 8/99-CE stated that clearances exempt from excise duty should not be taken into account for determining the aggregate value of clearances for home consumption. However, the Tribunal noted that the exemption under Notification No. 5/99-CE was based on the value of clearances, unlike other exemptions based on quantity or value. Therefore, the goods cleared under Notification No. 5/99-CE could not be excluded from calculating the aggregate value for SSI exemption under Notification No. 8/99-CE.

The Tribunal distinguished the case laws cited by the appellant, emphasizing that those judgments did not align with the specific circumstances of the present case where the exemption under Notification No. 5/99-CE was value-based. Consequently, the Tribunal upheld the impugned order, ruling in favor of the Revenue. The appeal was dismissed, and the decision was pronounced in court on 15/03/2017.