2005 (4) TMI 155 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification No. 175/86-C.E. and Notification No. 59/94-C.E.
2. Applicability of SSI exemption benefit to a manufacturer and its units.
3. Comparison with previous judgments regarding SSI exemption.

Analysis:
1. The first issue in this case revolves around the interpretation of Notification No. 175/86-C.E. and Notification No. 59/94-C.E. The Appellant argued that the reliance on a previous case by the ld. Commissioner was misconceived, emphasizing that the SSI exemption benefit is extended to the manufacturer and not to a factory. It was contended that if a manufacturer opts out of the SSI exemption benefit, this choice applies to all units of the manufacturer, preventing selective opting in or out for different units. The Appellant sought to set aside the impugned order based on these grounds.

2. The second issue concerns the applicability of the SSI exemption benefit to a manufacturer and its units. The Respondent, supported by the Consultant, argued that the case falls within the scope of previous judgments, including Faridabad Tools Pvt. Ltd. v. Collector of Central Excise and Franco Italian Co. Pvt. Ltd. v. CCE, Mumbai-II. The Consultant contended that the case aligns with the decision in Dum Dum Metalloy Industries Pvt. Ltd. v. Commissioner of Central Excise, Kolkata-III. It was emphasized that the manufacturer's case should be viewed holistically, and the appeal filed by the Revenue should be dismissed based on these precedents.

3. The final issue involves a comparison with previous judgments regarding the SSI exemption. The Tribunal referenced a decision by the Eastern Bench, highlighting that the Notification No. 1/93-C.E. does not prevent availing exemption for some products while not claiming it for others. The Tribunal found that the present case aligns with this decision, concluding that the appeal filed by the Revenue lacks merit. As a result, the appeal was dismissed, affirming the applicability of the SSI exemption benefit to the manufacturer and its units based on established legal principles and precedents.