9911796707
TMI Blog1995 (2) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... d. He pleaded that the appellant is manufacturer of tractor parts and is an ancillary to Hindustan Machine Tools, Panchkula. The appellant is claiming the benefit of Notification No. 175/86-C.E., dated 1-3-1986 and the period in dispute is November 1986 to 31-3-1990. The show cause notice is dated 3-12-1991. The Collector has invoked proviso to Section 11A. He pleaded that the extended period of limitation cannot be invoked as the appellant did not conceal anything from the department. He pleaded that earlier adjudicating order was passed by the Collector and the appellant had come in appeal before the Tribunal. A stay application was filed and the Tribunal had accordingly stayed the matter unconditionally. He further stated that the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd was filed before the lower authority and the letter dated 19-3-1979 issued by Government of India, Ministry of Industry, Department of Industrial Development. He argued that there is no distinction between ancillary small scale industry unit and small scale industry unit and since the appellant had already declared in the price list and as such extended period of limitation cannot be invoked. He pleaded that in case the appellant is desired to deposit duty amount of Rs. 23,47,624.97 and penalty amount of Rs. 1,00,000/-, it would amount to undue hardship. He again referred to the earlier stay order passed by the Tribunal which appears on page No. 44 of the paper book where a clear stay was granted. Shri Somesh Arora, learned JDR in reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2-1991 on the above subject. In this connection I may inform you that the present scheme of excise duty concessions to small scale units are not dependent on any ceiling of investment in plant and machinery. Only requirement is that the units in question should hold a valid registration from the appropriate authority as being registered as a small scale unit. Therefore, as long as ancillary units are in a position to produce an evidence of having a valid SSI registration, excise duty concession will be available even to ancillary units. For further clarification you are advised to contact the concerned Excise and Customs Collector of your area." 3.Para 4 of the Notification No. 175/86-C.E., dated 1-3-1986 is reproduced below : - ***** ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the said Stay Order is reproduced below :- We have carefully considered the pleas advanced on both sides. On a prima facie reading of the notification and of the material available on record as set out above, we are of the view that the unit has been registered as a small scale industrial unit. Therefore, there is no reason prima facie as to why the benefit of the Notification 175/86 cannot be extended to them. The alleged distinction that is sought to be made in the impugned order between the small scale ancillary unit and the small scale industry for the purpose of said notification cannot be appreciated at this stage. We shall get into it at the time of final hearing. In the facts and circumstances, we are of the view that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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