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TMI Blog1987 (10) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... parts up to the aggregate value of Rs. 5,00,000/- during the financial year. The Assistant Collector later issued a show cause notice on 22-5-1980 alleging that they were not eligible for the exemption on the ground that the clearances of specified goods i.e. motor vehicle parts of tractors including trailers during the financial year 1979-80 exceeded Rs. 15,00,000/- and, therefore, the condition (ii) of Notification 71/78-C.E., dated 1-3-1978 was not satisfied. The appellants urged that the condition (ii) and (iii) were to be read separately for the purpose of deciding the eligibility and that as the appellants satisfied the condition (iii), they were entitled to the exemption. The Assistant Collector rejected the appellants claim and on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 71/78-C.E.L. as under:- In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944 the Central Government hereby exempts the excisable goods of the description specified in column (3) of the Table hereto annexed (hereinafter referred to as the specified goods ), and falling under such Item Number of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), as is specified in the corresponding entry in column (2) of the said Table, in respect of the first clearances of such excisable goods for home consumption upto an aggregate value not exceeding rupees five lakhs and cleared on or after the 1st day of April in any financial year, by or on behalf of a manufacturer from one or more fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndition is that during the financial year 1978-79, the clearances of specified goods should not have exceeded Rs. 15 lakhs. There is a third condition which covers cases of manufacturers producing excisable goods falling under more than one item of the First Schedule and the aggregate value of all excisable goods should not exceed Rs. 20 lakhs. It is a common case that the appellants manufacture both T.I. 34A goods which are specified goods and also T.I. 68 goods. During 1979-80, the total clearances of T.I. 34A goods was more than Rs. 15 lakhs, but the total clearances of excisable goods was less than Rs. 20 lakhs. According to the appellants, clause (ii) would cover the case and that the appellants would be entitled to the benefit of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified goods not mentioning the number of items the notification is rigid in its application making it Rs. 15,00,000/-, in case of purely specified goods but if it is more than one item one is specified but another is not but nonetheless, excisable and aggregate amount exceeds 15 lakhs total exemption available would be Rs. 20,00,000/- because specified goods do not cease to be excisable for which exemption limit is fixed at Rs. 20,00,000/-. If that interpretation is not given the said classification as contained in Clauses (1) and (2) will lose its purpose and meaning." The division Bench of the same High Court confirmed the findings. The Ld. Counsel for the appellants also drew our attention to such an interpretation of Notific ..... X X X X Extracts X X X X X X X X Extracts X X X X
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