9911796707
TMI Blog1999 (5) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise Rules, 1944 on the assessee. Being aggrieved by this order, the appellants have filed the captioned appeal before us. 2. The facts of the case briefly stated are that the assessees manufacture electric stampings and got themselves registered as SSI with the Director of Industries, Rajasthan from 18-11-1989. The Department alleged that since their clearance of excisable goods during 1988-89 were Rs. 9.30 lacs i.e. in excess of Rs. 7.5 lacs during the year 1989-90, they could not avail of exemption under Notification No. 175/86 without getting themselves registered as SSI unit with the Director of Industries and since during the year 1989-90, they got registration as SSI unit from 18-11-1989, their clearances worth Rs. 8,77 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eding year 1988-89 did not exceed Rs. 7.5 lacs. It was also contended by them that it was not correct to say that the asseessee's clerances of excisable goods during the year 1989-90 were Rs. 9.93 lacs as during this year stampings worth Rs. 5.08 lacs sold by the assessee were those which had been obtained by cleaning of the old and used stampings purchased by them and that stampings worth Rs. 4,74,635/- sold by them were those which they had obtained by cutting bigger stampings into smaller sizes through M/s. Sunil Engg. Works on job work basis; that these stampings even if the process of cutting of used stampings is treated as a manufacture, they did not manufacture stampings worth Rs. 4.74 as it is a settled law that raw material supplie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... February, 1989. The Addl. Collector held that the assessee's argument that some quantity of electric stampings cleared by them during the period 1-4-1989 to 17-11-1989 was that which had been obtained simply by cleaning old and used stampings purchased by them is not acceptable as no evidence in this regard had been produced by them and, therefore it has to be held that during this period the entire quantity of electric stampings was that which had been manufactured from scrap during the process of sorting out, cleaning and cutting. The Adjudicating Authority further held that since they were not registered with the Director of Industries as SSI unit and since the aggregate value of their clearances exceeded Rs. 7.5 lakhs during the year 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the benefit of Notification No. 175/86 or not. 8. We note that the proviso (a), to para (4) of the notification stipulates that "Provided that nothing contained in this paragraph shall be applicable to proviso (a) in cases where the value of the clearances from a factory during the preceding financial year or in the current financial year did not exceed or is not likely to exceed Rs. 7.5 lakhs. This proviso is an exception to the main paragraph which inter alia requires that the assessee should be registered as SSI unit with the relevant authorities indicated in the main paragraph. The admitted position is that during the period 1-4-1989 to 17-11-1989, the appellants were not registered unit, therefore the appellants shall be governe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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