2018 (5) TMI 299 - AT - Central Excise

SSI Exemption - crossing of threshold limit - denial on the premises that during the period 2008-2009, the total value of clearances was ₹ 4,96,68,852/- - extended period of limitation - Held that - with regard to Appeal No.E/1080/2011, the total value of the clearance for the period 2007-2008was known to the department. In that circumstances, the extended period of limitation is not invocable - the appellant has claimed that gross value of clearances includes the value of traded goods and the same is required to be deducted from the total clearances. This fact was also not examined by the authorities below - appeal allowed on the ground of limitation. With regard to the Appeal No.E/1075/2011, we find that the claim of the appellant is that the total clearances include the value of the traded goods or not? The said aspect is required to be examined by the adjudicating authority whether the total clearances include the value of the traded goods - matter requires reconsideration. Appeal disposed off.

Issues:
1. Applicability of exemption notification No. 8/2003-CE dated 01/03/2003.
2. Invocation of extended period of limitation for show-cause notices.
3. Consideration of value of traded goods in total clearances for exemption eligibility.

Analysis:

Issue 1: Applicability of exemption notification No. 8/2003-CE dated 01/03/2003
The appellant contested the denial of the benefit of exemption notification due to exceeding the total value clearances during specific periods. The appellant argued that the total clearances should exclude the value of traded goods to fall within the exemption limit. The Tribunal noted that the authorities did not consider this aspect and directed examination by the adjudicating authority to determine if the total clearances indeed included the value of traded goods. The decision on the applicability of the exemption notification hinged on this crucial evaluation.

Issue 2: Invocation of extended period of limitation for show-cause notices
In one appeal (No. E/1080/2011), the extended period of limitation was invoked based on the timing of filing declarations and issuing show-cause notices. However, the Tribunal found that the total clearance value for the relevant period was known to the department, rendering the extended period of limitation inapplicable. The Tribunal emphasized that if the value of traded goods was deducted from the total clearances, it would align with the exemption threshold. Consequently, the appeal was allowed on limitation grounds.

Issue 3: Consideration of value of traded goods in total clearances for exemption eligibility
Regarding another appeal (No. E/1075/2011), the appellant raised a question on whether the total clearances included the value of traded goods. The Tribunal deemed this aspect essential for determining the appellant's entitlement to the exemption notification. Consequently, the Tribunal remanded the appeal back to the adjudicating authority for a thorough examination to ascertain if the value of traded goods impacted the eligibility for exemption.

In conclusion, the Tribunal's judgment addressed the issues of exemption notification applicability, invocation of extended limitation period for show-cause notices, and the significance of considering the value of traded goods in total clearances for exemption eligibility. The decision underscored the need for a meticulous assessment by the adjudicating authority to ensure a fair and accurate determination in accordance with the law.

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