1996 (12) TMI 226 - AT - Central Excise

Summary

Issues:
Interpretation of small scale exemption under Notification No. 77/85-C.E. and Notification No. 213/86-C.E. in relation to the availment of Small Scale Exemption under Notification No. 77/85-C.E., dated 17-3-1985 and Notification No. 213/86-C.E., dated 25-3-1986.

Detailed Analysis:

1. The appeals were filed by the Revenue against the order-in-appeal passed by the Collector of Central Excise (Appeals), Bombay, regarding the availment of Small Scale Exemption under relevant notifications. The matter pertained to the interpretation of Notifications No. 77/85-C.E. and No. 213/86-C.E. concerning the exclusion of clearances of excisable goods exempted from duty under other notifications for computing the value of clearances.

2. The Notification No. 167/79-C.E. provided exemption from excise duty on parts and accessories of motor vehicles and tractors when used for further manufacture, subject to certain conditions. The Collector observed that this exemption was not based on the value or quantity of clearances but on specific use and compliance with prescribed procedures.

3. The Tribunal noted that under Notification No. 77/85-C.E., the clearances of excisable goods exempted from duty by other notifications should not be considered for calculating the value of clearances. The Tribunal emphasized that the exemption under Notification No. 167/79-C.E. was not conditional on value or quantity but on the intended use in further manufacture of excisable goods.

4. The Tribunal analyzed the language of Notification No. 213/86-C.E., which mirrored Notification No. 77/85-C.E., and concurred with the Collector's interpretation. It was held that the exemption under Notification No. 167/79-C.E. was not subject to value or quantity considerations, but to specific use and procedural compliance.

5. Ultimately, the Tribunal found no merit in the Revenue's appeals and rejected them, along with disposing of the cross objections filed by the Revenue. The decision upheld the Collector's interpretation of the notifications and affirmed that the clearances exempted under Notification No. 167/79-C.E. should not be factored into the computation of clearances under subsequent notifications.

This detailed analysis highlights the Tribunal's interpretation of the notifications, emphasizing the specific conditions for exemption and the exclusion of certain clearances for calculating the value of excisable goods.