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TMI Blog1990 (3) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... Assistant Collector. 2. The facts of the case are as follows : - The respondent herein are manufacturers of Electrolytic Cells and parts thereof falling under T.I. 68 on their own account and also carrying out job work such as fabrication or undertaking repairs etc. either in the Factory itself or at the premises of their customers. It was found that the respondents had cleared goods valued at over Rs.15 lakhs during the financial year 1979-80 without having obtained a central excise licence and without paying Central Excise duty on the value of clearances immediately following the first clearance of Rs. 15 lakhs as per the provisions of Notification 89/79-CE dated 1-3-1979. The value of clearances was calculated inclusive of the value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of goods received for job work is to be included in the value of clearances for the purpose of calculation under Notification 89/79. According to the learned SDR, the value of clearances was rightly computed by the adjudicating authority while denying the respondents the benefit under Notification 89/79. He submits that the Collector, having held that the Madras High Court has not upheld the understanding of law set out in Trade Notification No. 106/80 dated 30-6-1980, ought not to have accepted the plea of the respondents that they were under the bonafide impression that the value of goods received for job work was to be excluded for computation of aggregate clearances for the purpose of Notification 89/79. 7. Learned SDR further sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ext submission is that Notification 31/76 applied to the respondents and in the alternative, even if it is held that Notification 11/78 applies, then the respondents need apply for a licence only on clearances reaching value of Rs. 12 lakhs. According to him the clearances fall below the limit of Rs. 12 lakhs (excluding value of raw materials received for job work). 10. Regarding seizure of goods within the factory, his contention is that seizure is unwarranted and illegal in the absence of proof of clandestine removal. 11. On a careful consideration of the submissions made by both the parties herein, it is seen that firstly it has to be decided whether the value of goods cleared by the respondents was within the exemption limit under N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rks v. Union of India -1981 (8) E.L.T. 859 (Bom) in which the High Court observed Mr. Govilkar contended that the 1979 notification did not operate for the purpose of the determination of the value; it operated only for the purpose of fixing the exemption limits. Value was to be arrived at by applying the provisions of Section 4 of CESA, 1944. This is substantially correct". The Court then proceeded to decide the case following the ratio of the Supreme Court in the case of A.K. Roy v. Voltas Ltd.-1977 (1) E.L.T. (J-177) on Section 3 of Central Excises Salt Act, 1944 relating to determination of assessable value of excisable goods and held that in the case of job work, raw material cost was not to be included for purpose of Section-4. How ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter, therefore, the department s contention that the respondents had exceeded the Rs. 15 lakh limit on value of clearances during 1979-80, and had to pay duty on clearances in excess thereof, has to be upheld and hence the duty in this respect has rightly been demanded. 12. As regards the other question in this appeal, whether the respondents were eligible for exemption from taking out a Central Excise licence under Notification 31/76, dated 28-2-76, there is not much force in the respondent s argument that exemption under Notification 89/79 is unconditional and hence they are eligible for the exemption as it is an exemption based on value of clearance in a financial year based on value slab. However, the Collector (Appeals) in his order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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