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TMI Blog1993 (1) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... ies and Mines, Government of Goa, Daman Diu vide Registration No. DI/Goa/491/70 dated 19-1-1970. As per this registration, the value of plant and machinery as per the norms fixed by the Directorate of Industries and Mines was not to exceed Rs. 7.5 lakhs. Subsequently, this limit of Rs. 7.5 lakhs was increased to Rs. 10 lakhs in 1975 and to Rs. 20 lakhs in 1980. When the value limit of plant and machinery of the appellant company exceeded the prescribed value limit of Rs. 20 lakhs, the appellant company applied to DGTD for registration as a medium scale unit. This registration was given to the appellant company on 19-1-1984. Some time in March 1985, the value limit for plant and machinery for SSI units was raised from Rs. 20 lakhs to Rs. 35 lakhs. Although the plant and machinery of the appellant company fell within the value limit of Rs. 35 lakhs in March 1985, the appellant company did not feel it necessary to apply for cancellation as medium scale unit and re-registration to the Directorate of Industries and Mines as SSI Unit, as no additional benefit accrued to the company on this account. Consequent on issue of Notification 175/86-C.E., dated 1-3-1986 a condition was laid dow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause notice dated 27-2-1987 wherein it was alleged that: (i) the value of plant and machinery of the appellant company exceeded Rs. 35 lakhs. Therefore, they cannot be classified as a SSI Unit. (ii) their value of clearances during the preceding financial year 1985-86 exceeded Rs. 1.5 crores. Therefore, they are not entitled to exemption as a SSI Unit, under the provision of Notification No. 175/86- C.E., dated 1-3-1986. The appellant company, therefore, was required to show cause why the classification list filed by them on 31-3-1986 and 24-4-1986 should not be approved by disallowing the exemption under the said notification and duty amounting to Rs. 15,08,442.06 should not be recovered from them under Rule 9B(5) of the Central Excise Rules 1944, since they have provisionally availed the said exemption pending approval of the said classification. It was further alleged in the aforesaid show cause notice that since the classification list in question was not approved the assessee could not have cleared the goods without resorting to the procedure prescribed under Rule 9B of the Central Excise Rules, 1944 read with Rule 173B(2A) of the said Rules, and have, therefore, contrav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s unit was first registered as a Small Scale Industries on 19-1-1970 at which point of time, the limit of the value of plant and machinery for registration as Small Scale Industries was Rs. 7.5 lakhs. Subsequently, the limit was extended to Rs. 10 lakhs in 1975 and Rs. 20 lakhs in 1980. The appellant company applied to DGTD for registration as a medium scale unit as the value of its plant and machinery exceeded the figure of Rs. 20 lakhs and the registration was granted on 19-1-1984. The appellant company again became entitled to registration as a small scale unit in March 1985 when the value limit was raised to Rs. 35 lakhs; however, the appellant did not immediately re-register as a SSI as it was not felt necessary. Thereafter with the issue of Notification 175/86, which stipulated as a condition for grant of exemption, registration of the unit with the Director of Industries, the appellant applied to DGTD on 10-3-1986 for cancellation of its registration as a medium scale unit and also to the Director of Industries for registration as a small scale unit (page 29 of the paper book) on 12-9-1986. The DGTD cancelled the registration as a medium scale unit (page 33 of the paper book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Salcete, Goa option regarding. I am to refer to the letter No. GB/53/1261 dated 10-3-1986 from M/s. Goa Bottling Co. Pvt. Ltd., Arlem, Salcete, Goa addressed to you and copy sent to this office regarding cancellation of DGTD Registration No. DGTD/HB/B/S-35/R-12539/C-26(i)ND/89 dated 19-1-1984. Kindly intimate to this office action taken by you on the matter so that the concerned unit may not get any dual benefit of incentives and concessions. (c) Letter No. GB/53/1571 dated 12-5-1986 from Goa Bottling Co. Pvt. Ltd., Arlem PO Raja, Salcete, Goa to the Development Officer, Govt. of India, Dte. General of Technical Development, (Food Fermentation Div.), Udyog Bhavan, New Delhi. Ref : Ours No. GB/53/1261 dated 10-3-1986. Letter No. 2/49/8 MSI/DIM/4343 dated 17-4-1986 from Dir. of Industries, Goa The Dte. of Industries and Mines, Panjim, Goa have informed us that vide our above letter they have written to you by their above-referred letter asking for your confirmation for reverting our industry back to the small scale unit. Your early confirmation to them would be greatly helpful to us and we would be highly obliged if you could do that at the earliest. (d) Letter No. Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o us by their letter No. Food/2(221)/83/1722 dated 12-9-1986 that the concerned certificate is cancelled. You had then issued us a certificate dated 5-11-1986 that we are registered with your office as a SSI under No. Dl/Goa/491/70 dated 19-1-1970. As we were holding Medium Scale Unit registration of DGTD till 13-3-1986, we would be highly obliged if you could regularise for the period from 14-3-1986 (when we asked for cancellation of DGTD registration) till 4-11-1986 and issue us a certificate that we were under SSI during this period also. This certificate is required to regularise our records for benefit of Central Excise scheme. The relative correspondence is attached herewith. Your early action in the matter would be highly appreciated. (h) No. DI/Goa/491/70/6030 dated 18-5-1992 from Government of Goa, Dite. of Industries and Mines, Udyog Bhavan, Panaji, Goa to M/s. Goa Bottling Co. Pvt. Ltd., Goa Subject: Regularisation of gap period from 14-3-1986 to 5-11-1986 With reference to your letter No. AD/13/5074 dated 16-4-1992 on the subject cited above, it is informed that pursuant to your application dated 10-3-1986, received in this office on 14-3-1986, to Govt. of Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovt. of India have laid down procedures/guidelines for the registration as well as deregistration of SSI units. In this connection you may please refer to the Manual on Procedures of Small Scale Industries issued by D.C., SSI, New Delhi. (b) When a SSI unit switches over to medium/large scale sector on account of increase in investment in plant and machinery and get itself registered with DGTD or other appropriate authorities of Govt. of India, it has the option to apply back for SSI status. This option has to be exercised within a period of 6 months from the date of issue of notification by Govt. of India, raising the ceiling limit of investment in plant and machinery. The unit continues to enjoy the benefits during the option period through the DGTD. (c) Since the unit was granted DGTD registration in consultation with this Deptt. the SSI registration automatically becomes nullified without requiring to be cancelled and which could be reactivated in future if so needed. (d) The same was done on the basis of your application dated 10-3-1986 consequent upon cancellation of DGTD registration vide their letter dated 12-9-1986. (e) In this connection please refer to your let ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provides that the value of gas producer plant should be excluded. Once the value of the storage tank is excluded, the value of plant and machinery is found to be below Rs. 35 lakhs. We, therefore/ set aside the finding of the Collector that the value of plant and machinery of the appellant company during the relevant period exceeded Rs. 35 lakhs so as to disqualify the appellant from being classified as a SSI. 12. Finding Re : Value of Clearance The gross value of the clearance is Rs. 2,11,43,744/-, which includes a total amount of freight and transport expenses of Rs. 64,36,185/- which the appellant has claimed as a deduction from the gross value of clearance. Out of these freight and transportation expense of Rs. 64.36 lakhs, the Collector has disallowed the amount of Rs. 15.70 lakhs and only the balance amount of Rs. 48,64,491/- has been considered by the Collector. Out of these transportation expenses of Rs. 48.64 lakhs which were considered by the Collector, only 50% thereof, that is Rs. 24.32 lakhs have been allowed as a deduction from the gross value of the clearance, on the grounds that the remaining half of the transportation expenses have been incurred on transport p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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