1992 (8) TMI 170

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..... for removal of semi-finished goods at the factory premises of M/s. Bakul Chemicals Ltd., Nandesari for further process and return thereof to their factory premises at Nandesari. The respondent had filed C.L. bearing No. 69/84-85 with effect from 18-11-1984 claiming exemption under Notification No. 77/83 dated 1-3-1983 on the grounds that their clearance value during the preceding financial year i.e. 1984-85 is Rs. 23,92,975/- and capital investment made on Plant and Machinery was Rs. 5,84,876.96 which did not exceed Rs. 20/- lakhs as per the above-said notification. However, on scrutiny of record it revealed that capital investment made on Plant and Machinery by M/s. Bakul Chemicals Pvt. Ltd. where part of process is carrying out has exce .....

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..... iled an appeal with Collector (Appeals), Bombay and Collector of Central Excise (Appeals), Bombay under his impugned order No. M-636/BD-527/85 dated 12-9-1985 has allowed the respondent s appeal with the direction to grant consequential relief to the respondents. Hence this appeal. Shri M.K. Jain, learned Senior Departmental Representative made the following submissions :- As per the proviso to Notification No. 77/83, the capital investment on Plant and Machinery installed in the industrial unit in which the goods are manufactured should not exceed Rs. 20/- lakhs. In the present case, the goods under clearances have been manufactured in two industrial units as under : (1) M/s. Pocona Chemicals and (2) M/s. Bakul Chemicals Pvt. Ltd. .....

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..... ral Excise v. Petco Chemical Industries. The submissions made by both the parties, herein, have been carefully considered. The Deptt. has invoked the first proviso to Notification 77/83 to deny the exemption which reads as follows :- Provided that an officer not below the rank of an Assistant Collector of Central Excise is satisfied that the sum total of the value of the capital investment made from time to time on plant and machinery installed in the industrial unit in which the said goods, under clearance, are manufactured, is not more than rupees twenty lakhs. A perusal of the proviso would show that what is envisaged therein is the value of capital investment on plant and machinery installed in the industrial unit in which the g .....

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