9911796707
TMI Blog1998 (4) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... d), were to be taken into account for the purpose of arriving at the aggregate value of clearances of all excisable goods for determining the eligibility of the appellants for the benefit of small scale exemption under Noti- fication No. 1/93-C.E., dated 28-2-1993 (as amended). The Assistant Collector of Central Excise, Calcutta had taken a view that the exemption under Notification No. 48/77-C.E. was based upon the quantity of clearances and thus the clearances of the clinical samples were to be taken into account for the purposes of computing the aggregate value of clearances of P or P medicines. This view was confirmed by the Collector of Central Excise (Appeals), Calcutta. 2. We have heard on 13-4-1998, Shri K.K. Banerjee, ld. Adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise who adjudicated the matter and the Collector of Central Excise (Appeals) who had passed the impugned order-in-appeal had taken a view that the exemption under Notification No. 48/77-C.E. was based upon the quantity of clearances and thus was hit by the exclusion under Explanation II of the Notification No. 1/93-C.E. 5. For proper understanding of the terms of Notification No. 48/77-C.E. dated 1-4-1977 (as amended), the notification is extracted below :- "Exemption to clinical samples. - In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944 and in supersession of the notification of the Government of India, Ministry of Finance (Department of Revenue) No. 105/61-Central Excises, dated the 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n firm; and (ii) no interest in the firm is held by a foreigner or a company; and (c) where it is an individual, such individual is not a foreigner. [Notification No. 48/77-C.E., dated 1-4-1977 amended by Notifications No. 78/86-C.E., dated 10-2-1986; No. 97/86-C.E., dated 10-2-1986; 104/86-C.E., dated 27-2-1986 and No. 51/88-C.E., dated 1-3-1988]." 6. It will be seen that under this exemption notification, exemption was provided to the clinical samples of P or P medicines and this exemption in a particular month was "limited to a quantity not exceeding 4% by value of the total duty paid clearances during the preceding month of all types of patent or proprietary medicines." It is only for arriving at the quantum of exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of excise leviable thereon is granted based upon the value or quantity of clearances made in a financial year) issued under sub-rule (1) of Rule 8 of the said Rules or sub-section (1) of Section 5A of the said Act, shall not be taken into account. 7. As exemption under Notification No. 48/77-C.E. is available to the clinical samples in any month and this exemption is not based on the quantity of clearances made in a financial year, we do not agree with the view taken by the Commissioner of Central Excise (Appeals) in this case. 8. Taking all the relevant facts and considerations into account, we set aside the impugned order-in-appeal in so far as the issue of addition of exempted clinical samples, exempted under Notification No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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