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Issues:
1. Clubbing of clearances of multiple units for duty calculation. 2. Liability of duty on manufactured goods. 3. Computation of assessable value for exemption limit. Analysis: Issue 1: Clubbing of clearances The appeal contested the clubbing of clearances of multiple units for duty calculation. The appellant argued that the other units were separate legal entities and supplied raw materials to get printed cartons manufactured. It was emphasized that the appellants were not mere suppliers of raw materials but the actual manufacturers. The Tribunal found that the appellants were indeed the manufacturers as they completed the manufacturing process by glueing or pasting the printed cartons. The Tribunal upheld the clubbing of clearances and rejected the argument that duty could only be charged at the initial stage of punching the cartons. It was determined that duty could be charged at any stage, as specified in the tariff entry, whether in assembled or unassembled condition. Issue 2: Liability of duty on manufactured goods The second ground raised was regarding the liability of duty on the manufactured goods. The appellant contended that duty liability is on the manufacturer as per Rule 7 of the Central Excise Rules, 1944. The Tribunal agreed with this argument and emphasized that the manufacturer is liable for duty. It was clarified that even if the clearances were to be clubbed for small scale exemption, the duty liability remains with the manufacturer, and in this case, the appellants were considered the manufacturers. Issue 3: Computation of assessable value The final issue revolved around the computation of the assessable value for the exemption limit. The appellant argued that the assessable value should be determined by deducting the duty payable on the article at the time of removal, as per Section 4(4)(d)(ii) of the Act. The Tribunal agreed with this contention and held that the value of clearance should be calculated by deducting the duty payable, not the actual duty paid. It was emphasized that if duty is payable, it should be deducted while determining the assessable value, even if not explicitly shown in the invoice. Following relevant decisions, the Tribunal ruled in favor of the appellants on this issue, allowing them to avail exemption based on the computed assessable value. In conclusion, the Tribunal upheld the clubbing of clearances, affirmed the duty liability on the manufacturer, and directed the computation of the assessable value for exemption purposes by deducting the duty payable. The appeal was disposed of in favor of the appellants based on the above determinations.
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