2017 (2) TMI 894 - AT - Central Excise

SSI exemption - clubbing of clearances - whether while computing the aggregate value of clearances for the financial year 2007-08 the value of clearances made in terms of N/N. 64/95-CE dated 16.3.1995 is required to be excluded in terms of clause 4(a) of the Notification ibid? - Held that - It is not disputed that the clearances made to the ordnance factory have been made under the provision of 64/95 CE dated 16.03.1995. The aggregate value of such clearances are clearly not to be included in computing the total aggregate value of clearances of excisable goods under clause z(vi) - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Claim for SSI exemption under Notification No. 08/2003 for financial year 2008-09.
2. Interpretation of brand name/trade name exclusion for determining aggregate value of clearances.
3. Dispute regarding exclusion of clearances made to the Government Ordnance factory for SSI benefit calculation.

Analysis:
1. The appeal challenges the Order-In-Appeal by the Commissioner (Appeals), Bhopal, concerning the SSI exemption claim under Notification No. 08/2003 for the financial year 2008-09. The Department contends that the appellants exceeded the limit in the preceding financial year, while the appellants argue for exclusion of certain clearances to stay within the threshold.

2. The dispute hinges on the interpretation of brand name/trade name exclusion under Notification No. 08/2003. The appellants rely on the definition of brand name/trade name to argue that markings on their product are solely for identification, not to establish a trade connection. The Department, however, points to specific notifications to support its view that mere code or drawing numbers do not constitute a brand name for exclusion purposes.

3. The crux of the matter lies in the exclusion of clearances made to the Government Ordnance factory for calculating SSI benefit eligibility. The appellants assert that the goods supplied to the factory bore their brand name for identification purposes only, not as a trade connection indicator. Citing compliance with relevant rules and a precedent, they argue for the exclusion of these clearances to fall within the SSI benefit threshold.

In conclusion, the Tribunal ruled in favor of the appellant, setting aside the impugned order and allowing the appeal. By excluding the value of clearances made to the Ordnance factory, the aggregate value for the financial year 2007-08 remained below the specified limit, entitling the appellant to the SSI benefit under Notification No. 08/2003 for the subsequent financial year 2008-09.