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TMI Blog1990 (6) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... llants are manufacturers of Barrium Carbonate and Sodium Sulphide and have registered themselves with the Department of Industries as a Small Scale Industry with capital investment of Rs.16,49,360.58 ps. The Department has, however, worked out the capital investment on Plant Machinery as Rs. 23,31,439.75 ps. Against the order of the Collector, the appellants have contested the finding on the capital investment of Rs. 20,35,313.40, after conceding to some of the exclusions, which the Collector has allowed as being incorrect, on the following grounds :- (i) There was error in the arithmetical calculations; (ii) Inclusion of the value of six driers which were dismantled and amount of Rs. 84,494 qualifies for deduction; (iii) The cost ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Maharajapuram in 1986 (23) E.L.T. 484 (Tribunal) which advocates that norms fixed by the Central Government have been followed by State Government and also the Director of Industries and Commerce and hence registration small-scale industries would render the unit eligible for the concessional notification under the Industries (Development and Regulation) Act, 1951. That in respect of the various electrical equipment, the amount of Rs. 78,594/- is to be excluded as per the guidelines issued by the Development Commissioner, Small Scale Industries, Govt. of India. The cost of six motors valued at Rs. 39,893.20 also to be excluded as per the general guidelines issued by the Development Commissioner. The amount of Rs. 1,00,000/- paid to Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 36,425 is not includible as per the letter of the General Manager, District Industries Centre, Cuddapah in pursuance of the guidelines for setting up small-scale industries in Andhra Pradesh. 4. In his brief rejoinder, Shri L. Narasimha Murthy, Ld. J.D.R. referred to the order of the Collector on the question of excluding the generating sets and other electrical installations vis-a-vis the decision of the Tribunal in the case of M/s. Ahmedabad Chemicals Pvt. Ltd. v. Collector of Central Excise, Baroda, 1984 (16) E.L.T. 560 - whereby the Collector has excluded certain items considered to be not part of the plant and machinery. In respect of the payment of Rs. l lakh to Shri Sankara Raju with reference to the letter filed by the appellant r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cost of investment and thereby the total capital investment exceeds the limit of Rs. 20 lakhs and rendered the appellant ineligible for the exemption. By determining the capital investment, the object of the Government is to extend the exemption to all small scale units, and the plant and machinery will bring within its fold, all the units which will be used in the production of the goods. Thus any of the electrical installations, civil works which form part of the plant will naturally bring these items under the scope of the term plant. The Govt. however, has issued certain guidelines for such determination and in the Explanation I, to the notification, it has been incorporated that any investment made on plant and machinery which hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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