2001 (4) TMI 157 - AT - Central Excise

Summary

Issues:
Interpretation of Notification No. 175/86-C.E. regarding exemption limit for excisable goods and inclusion of branded goods cleared on payment of duty in the exemption calculation.

Analysis:
1. The Notification exempted specified excisable goods from duty for first clearances up to Rs 30 lakhs, with further exemptions for goods up to Rs 50 lakhs and Rs 75 lakhs, subject to certain conditions.
2. Clauses 2 and 3 of the Notification imposed restrictions on availing the exemption, limiting the aggregate value of clearances by manufacturers in a financial year.
3. The main issue raised was whether the value of branded goods cleared on payment of duty should be included in calculating the exemption limit under the Notification.
4. The Revenue argued that since branded goods are neither exempted nor charged at a nil rate, they should not be excluded from the exemption calculation, citing relevant legal decisions.
5. The respondents contended that the exemption under the Notification applies only to specified goods not cleared on full duty, and provisions in the Notification exclude the value of branded goods from the exemption calculation.
6. The Tribunal analyzed previous decisions and concluded that branded goods cleared on payment of duty are outside the purview of the exemption Notification and should not be considered for calculating the exemption limits.
7. The Tribunal dismissed all Revenue appeals, stating that the provisions of the Notification exclude the value of branded goods cleared on duty from the exemption calculation.
8. Cross-objections filed by one respondent were deemed unnecessary as the earlier decisions were in their favor, and the Tribunal dismissed both the Revenue appeals and the cross-objections.