2009 (7) TMI 966 - AT - Central Excise

Summary

Issues:
Interpretation of Notification No. 8/99-C.E. and Notification No. 10/99-C.E. for availing duty exemption on Hi-Fi Music Systems and Air Conditioners separately.

Analysis:
The appellant, engaged in manufacturing Colour TV, Hi-Fi Music Systems, and Air Conditioners, faced a duty demand of Rs. 5,59,550 due to clubbing the clearance values of Hi-Fi Music Systems and Air Conditioners together for exemption calculation under Notification No. 8/99-C.E. and Notification No. 10/99-C.E. The dispute centered on whether the appellant could claim separate exemptions under both notifications in a financial year. The advocate argued that Para 3(a) of the notifications required considering clearances made under exempted goods for determining the aggregate value, not restricting separate exemptions. The Tribunal analyzed past decisions like CCE v. K.F. Beltings and Fintex Industries v. Collr. of C.Ex., emphasizing the distinction between aggregate clearances and individual product exemptions.

The Tribunal clarified that Para 3(a) of the notification aimed at determining the aggregate value of clearances for allowing exemptions in the current year, not restricting individual product exemptions. It highlighted the importance of differentiating between clearances of specified goods and aggregate clearances for administering the exemption effectively. The Tribunal referenced the observations in the K.F. Beltings case, emphasizing that the exemption under Notification No. 8/99 was for early clearances of specified goods within a financial year, not based on the total value of all excisable goods cleared.

Based on the analysis, the Tribunal set aside the impugned order, providing consequential relief to the appellant. The decision underscored the critical distinction between aggregate clearances and specific product exemptions under the notifications, ensuring that manufacturers could avail separate exemptions for different products without aggregating their values. The judgment reaffirmed the correct interpretation of the notifications, safeguarding the appellant's right to claim individual exemptions for Hi-Fi Music Systems and Air Conditioners without combining their clearance values.