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TMI Blog1989 (3) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... limit for small scale industries in respect of the products cleared by them in terms of Notification No. 175/86 and also imposing on them a penalty of Rs. 100/- under Rule 9(2) of the Central Excise Rules, 1944. 2. The appellants under their management have two units which are small scale industrial units. They are licensed to manufacture Electric Motor and parts thereof. They are engaged in the manufacture of four commodities falling under various headings of the Central Excise Tariff Act, 1985 - 8503.00, 8485.90, 8481.80 and 7308.90. In the Unit No. II they are manufacturing excisable goods under Heading 8503.00 only. For computing the aggregate value of clearances, the total value of clearances of the goods of individual heads of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndition in the Notification for the exemption is that under one heading number, the exemption granted should not exceed Rs. 15 lakhs According to the learned Consultant, the second condition does not restrict the number of sub-items which can get the benefit of exemption. It only speaks of the value which is limited to Rs. 15 lakhs. The only condition is that each one of the items should be less than Rs. 15 lakhs. According to the learned Consultant, therefore, no duty is payable on the other goods manufactured except that taken together they exceed Rs. 15 lakhs. 4. Shri K.K. Bhatia, the learned S.D.R. appearing for the Department contended that Notification No. 175/86 lays down that when once clearances in respect of one of the specifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne heading of the tariff and up to Rs. 30 lakhs for more than one heading, the computation being done on the value of the first clearances in the financial year April to March. Within the overall value of the first clearances up to Rs. 30 lakhs the manufacturer of the specified goods falling under more than one heading can, in terms of the Notification, have any combination of the value of the clearances of the different goods for enjoying the full exemption Up to Rs. 30 lakhs. This is subject to the condition that the value of clearances under any one heading among them does not exceed Rs. 15 lakhs. It also follows from a reading of the Notification that even if specified goods falling under one of the headings manufactured by the manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15 lakhs, he would be able to take advantage of this notification for both types of goods up to 15 lakhs of value of each. If he makes, goods, A ; B C the exemption will be available up to Rs. 15/- lakhs for any one of the three products and the reminder of Rs. 15 lakhs, will be available for the other goods in any combination. The language of the Notification cannot give rise to the presumption that where in the case of any one product the limit set for that product is exceeded, duty is payable on the other goods, where the limit not yet been reached." From the above discussion of the scope of the Notification clause (a), and the departmental clarification referred to above, it is evident that the claim of the appellants herein t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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