2013 (12) TMI 1034 - AT - Central Excise

Inclusion of clearances for determination of aggregate value Area based SSI exemption under Notification No.08/2003 Waiver of Pre-deposit Held that - Following SARVOTHAM CARE LTD. Versus COMMISSIONER OF C. EX., HYDERABAD 2009 (8) TMI 1004 - CESTAT BANGALORE - what was done in calculating the aggregate value of the clearances of all the excisable goods for the preceding financial year in terms of para 2 (vii) of Notification was correct and therefore no prima facie case has been made out - the appellant directed to deposit Rupees Three lakhs thirty five thousand three hundred and thirty three as pre-deposit upon such submission rest of the duty to be stayed till the disposal Stay granted.

Summary

Issues:
1. Whether clearances made by the Baddi unit without duty payment should be included in determining the aggregate value of clearances for exemption eligibility under Notification No. 08/2003-CE.

Analysis:
The appellant, engaged in manufacturing cosmetics and toilet preparations, operates factories in Himachal Pradesh and Andhra Pradesh. The dispute revolves around whether clearances from the Baddi unit without duty payment should count towards determining the aggregate value of clearances for exemption eligibility under Notification No. 08/2003-CE for SSI units. The appellant argues that clearances from the Baddi unit need not be included, citing para 3(a) of the notification exempting clearances bearing another person's brand name. However, the AR contends that the appellant's ineligibility is based on para 2(vii) of the notification, which considers all excisable goods' clearances exceeding Rs. 400 lakhs in the previous financial year as grounds for exemption ineligibility.

Upon reviewing the submissions, the Tribunal finds the issue akin to a prior case involving the same appellant. In the previous case, the Tribunal upheld the calculation of aggregate clearances for the preceding financial year as correct, leading to no prima facie case for exemption. Consequently, the Tribunal directs the appellant to deposit the entire duty amount of Rs. 3,35,333 within 8 weeks and to report compliance accordingly. The appellant's request to consolidate multiple appeals on the same issue is granted, and the appeals are tagged together for final hearing. Notably, the requirement for interest on duty demand and penalty deposit is waived during the appeal's pendency, subject to the duty amount's deposit.

This comprehensive analysis of the judgment delves into the core issue of clearances' treatment for exemption eligibility under Notification No. 08/2003-CE. The Tribunal's decision, based on legal provisions and prior precedents, provides clarity on the appellant's duty payment obligations and the exemption criteria, ensuring a fair and just resolution in line with the law.