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TMI Blog1999 (7) TMI 619X X X X Extracts X X X X X X X X Extracts X X X X ..... al Excise visited the factory premises of the appellants and checked their records. It was observed that the factory came into production during the year 1987-88 with total investment of Rs. 60,19,580/- on plant and machinery; that this investment on plant and machinery was raised further during the years 1988-89, 1989-90 and 1990-91. It was therefore alleged that the party s declaration on the cost of plant and machinery to be Rs. 34.85 lakhs only was wrong, therefore they were not entitled to the benefit of SSI exemption. It was further alleged that the appellants had cleared excisable goods valued at Rs. 1,99,14,408/- during the year 1990-91 and that for the same period they had charged additional amount of Rs. 6,68,941.25 as forwarding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .25; that another amount of Rs. 36,315.00 was the trade discount and if these two items are excluded the value of the clearance during the year 1990-91 was less than Rs. 200 lakhs and, therefore the appellants were entitled to the benefit of SSI unit. After careful consideration of the submissions, the Collector confirmed the demand of duty and imposed a penalty as indicated above. 3. Shri Gopal Prasad, ld. Advocate submits that the appellants had obtained SSI exemption. He submits that the appellants submitted an application for issue of SSI certificate dated 22-12-87 and got the certificate on 30-12-87. He submits that before issue of certificate the Officers of Directorate of Industries visited their factory and calculated the investm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearances during the year 1990-91 is concerned, there has been a conclusion in the finding of the adjudicating authority holding that the forwarding charges were of the order of Rs. 6,68,941.25. He submits that the position was clarified in their reply to SCN wherein they had clarified in a figure of Rs. 6,68,941.25, Rs. 6,55,453 was the freight charges and Rs. 36,350/- was the trade discount. He submits that it is well settled position in law that freight charges and the trade discount are not includible in the assessable value. He submits that if these 2 amounts are excluded then the remaining amount, if any, added, the aggregate value of clearance will be less than Rs. 200 lakhs. He submits that thus for the succeeding years also th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. We find that the Notfn. No. 175/86, speaks of a certificate granted by the Directorate of Industries. In the instant case, there was a certificate granted. If something new or wrong came to the notice of the Central Excise Authority, they should bring them to the notice of the Directorate of Industries. In the instant case, they no doubt brought to the notice of the Directorate of Industries. However, the Directorate of Industries neither cancelled their certificate nor withdrawn it. We have also seen the case law cited by the appellants. We find that the Tribunal in those cases has held that the department need not look into the investment in plant and machinery of the appellants because there is no provision in the Notfn. No. 175/86, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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