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TMI Blog2005 (11) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. A show cause notice came to be issued on 1-5-2002 on the appellant who was the manufacturer of corrugated paper and paper board and corrugated cartons, boxes etc. falling under Chapter Heading 4808.10 and 4819.12 and were availing of exemption under Notification No. 8/01-C.E., dated 1-3-2001 during the financial year , 2001-2002, calling upon them to show cause why central excise duty amounting to Rs. 4,91,433/- should not be demanded from them on the ground that for computing the aggregate value of first clearances during that financial year, the total value of the goods cleared by M/s. M.M. Containers Pvt. Ltd. amounting to Rs. 30,73,740/- in the factory sold to the appellant by them on 1-8-2001 was required to be added to the valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... like the present one, the matter was more appropriately covered by clause (v) of clause 2 of the notification and therefore, the appellant was entitled to get the benefit of the notification for the total amount of Rs.1 crore by combining the clearances from its two factories and that the eligibility could not have been reduced on the basis of the clearances made by the previous manufacturer from its factory which were clubbed with the clearances from its other factory. The learned authorized representative for the department supported the reasoning adopted by the authorities below and their conclusions. 5. There is no dispute about the fact that from 1st August, 2001, the factory of M/s. M.M. Containers Pvt. Ltd. was purchased by the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 740/- from 1-4-2001 to 31-7-2001, were to be added to the clearances of the appellant in determining the eligibility to exemption under the said notification dated 1-3-2001. 6. Under the notification dated 1-3-2001, which was issued under Section 5A(1) of the Central Excise Act, 1944, exemption was granted to clearances specified in column No.(2) of the Table contained in the notification for home consumption of excisable goods of the description specified in the Annexure to the notification, from the duty of excise and special excise duty as was in excess of the amount calculated at the rate specified in the corresponding entry in column (3) of the Table (which was nil) in respect of first clearances not exceeding Rs. 1 crore made on or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the said Table and not separately for each manufacturer. 7.1 In the show cause notice, clause (vi) of Para 2 has been invoked and the demand has been upheld under that clause on the ground that the previous manufacturer M/s. M.M. Containers Pvt. Ltd. as well as the appellant had during the financial year manufactured specified goods and therefore the aggregate value of clearances by both the manufacturers was attributable to the appellant. 7.2 Under clause (vi) of Para 2 of the notification, a situation is contemplated where the specified goods are cleared by one or more manufacturers from a factory. Such clearance by the manufacturers may be done simultaneously or during different periods, but it should be within the same financial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 1-8-2001 by the appellant) to their other factory at Coimbatore as per the provisions of clause (v) of Para 2 of the said notification. It was also stated that this was evident from the notings in RT. 12 returns filed by M/s. M.M. Containers Pvt. Ltd. It is, therefore, clear that while deciding upon the eligibility of M/s. M.M. Containers Pvt. Ltd., the authorities had invoked clause (v) of Para 2 of the said notification, because even M/s. M.M. Containers Pvt. Ltd. was having two factories till 31st July, 2001 during the relevant financial year, i.e. the factory which was sold to the appellant on 1-8-2001 and the other factory at Coimbatore. Since the present case was also a case where the specified goods were cleared by one manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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