9911796707
TMI Blog1992 (4) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... for the first time in June 1983 after filing a declaration under Notification 111/78 dated 9-5-1978 read with notification 83/83. They obtained L4 Licence on reaching 80% of the exemption limit in June 1984 and filed a classification list claiming exemption under Notification 83/83 for the financial year 1983-84. This classification list was approved by the Assistant Collector on 20-2-1984. The appellants submitted a revised classification list for the year 1984-85 claiming exemption under Notification 83/83 which was also approved by the Department. As the appellants effected clearances, the value of which exceeded Rs. 25 lakhs during 1984-85, a show cause notice was issued proposing levy of central excise duty of Rs. 1,24,125.14 on the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ara 4 is attracted to this case. The authorities have rightly held that the appellants are not entitled to exemption under the notification. This view has also been expressed by the Tribunal in the case of Collector of Central Excise, Rajkot v. Decora Ceramics Private Ltd. reported in 1984 (24) E.L.T. 73 wherein it has been held that exemption is admissible only if the clearances in the financial year do not exceed Rs. 25 lakhs. Paras 15 and 16 which are relevant are reproduced below : 15. Turning to the second aspect, viz. the demand for duty made by the Assistant Collector in respect of the clearances during 1984-85, para 4 of the notification 83/83 reads: Where the specified goods have not been cleared from any factory in the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the establishment of the Board concerned under repealed Act. In the context of the said section, it is easy to see the rationale of the Court s decision. However, we have to see the setting in which the phrase the financial year occurs in para 4 of the notification 83/83. As can be seen from the opening passage in the first para of the Notification, it exempts goods cleared for home consumption on or after the 1st day in any financial year . Para 3 and 4 lay down certain conditions regarding clearances during the preceding financial year for being eligible for exemption during the financial year . It is clear that the two phrases have not been used synonymously. The financial year signifies the year for which the exemption is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r a period of six months prior to the issue of the show cause notice which in this case has been issued on 18-12-1984 demanding differential duty for the April to November 1984. The notice contains no allegation of suppression and we, therefore, hold that the demand is within time only from June 1984 onwards. 6. The alternate submission of the appellants is that they are entitled to the benefit of Notification 74/78 which grants concessional rate of duty of 8% subject to satisfaction of conditions stipulated in the notification. The appellants submit that they are a SSI Unit whose aggregate value of first clearances of the specified goods for home consumption was below Rs. 1 crore and the value of capital investment made from time to time ..... X X X X Extracts X X X X X X X X Extracts X X X X
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