9911796707
TMI Blog2013 (4) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... detergent washing powder in the year 1992 and consequently, took steps for setting up a manufacturing plant at Chhatral in the name and style of "Kamdhenu Gramodyog Detergent Unit". By a Notification No. 88/88-C.E., dated 1st March, 1988 as amended from time to time, the Central Government in exercise of powers under sub-rule (1) of Rule 8 of the Central Excise Rules, 1944 exempted goods of the description specified thereunder from the whole of the duty of excise leviable thereon provided that such goods are manufactured in rural areas by registered co-operative societies, or by women's societies, or by institutions recognised by the Khadi and Village Industries Commission or the State Khadi and Village Industries Boards or by units run with the cash assistance from District Rural Development Agencies under the Integrated Rural Development Programme (IRDP). The goods specified thereunder, inter alia, included laundry and carbolic soaps. The petitioner who claims to be recognized by the Khadi and Village Industries Commission (hereinafter referred to as "KVIC") vide certificate N.WZIC/GUJ/56/93-96 under the Khadi and Village Industries Commission Act, 1956, filed a declaration befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of Central Excise duty under Notification No. 88/88-C.E., dated 1-3-1988 two things are required to be satisfied. Firstly, that the goods enumerated in the table under the said notification should be manufactured in a rural area having a population of less than ten thousand and secondly that same should be manufactured by a registered cooperative society or by a women's society or by an institution recognized by the Khadi and Village Industries Commission or the State Khadi and Village Industries Boards, etc. In the facts of the present case, both the aforesaid conditions were satisfied namely, that the goods were manufactured in a rural area and that petitioner institution was recognized by the Khadi and Village Industries Commission. Once both the aforesaid conditions were satisfied, the petitioner became entitled to the benefit of exemption under the said notification and that the fact that the goods were manufactured at Iyava and not and Chhatral and were sold with Hipolene labels in retail pack is immaterial as there is no such conditionality attached to the notification. The authorities below were, therefore, not justified in holding that the petitioner was not entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al and was in respect of the units specified thereunder. It was submitted that village Iyava, Sanand, had not been included in the said list and as such the factory set up by the petitioner at Iyava, Sanand was not recognized by KVIC and as such both the authorities below were justified in holding that the petitioner was not entitled to exemption under the notification in question and was liable to pay excise duty on the goods manufactured by the said unit. 6. Before adverting to the merits of the case, the findings recorded by the adjudicating authority and the Tribunal may be adverted to. The adjudicating authority while dealing with the contention that there was no stipulation in the Notification No. 88/88 that the individual manufacturing unit should be recognised separately by the KVIC or state KVIB has observed that the KVIC, Bombay's certificate dated 12-4-1993 produced by the petitioner in its defence, shows that the petitioner has been given recognition with condition of location of units or manufacturing centres, for such village industries goods, such as detergent powder etc. The certificate provides a list of 27 manufacturing centres including Bavla, Dadriyana, Dh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce to its constituted unit. It that case it could perhaps be argued that the appellant's unit was part of the Pratishtan and would be entitled to the exemption. But however in a situation where the Commission itself found it necessary to mention each unit separately and indicated the nature of activity in that unit, it would be incorrect to conclude that, despite appellant's unit for not figuring in the list, 'recognition had been accorded to it." 8. From the facts as emerging on record, it appears that the petitioner has been recognized by KVIC, Bombay for establishing units for manufacturing goods as described in the exemption Notification No. 88/88, dated 1st March 1988 as amended from time to time, with the condition of location of units or manufacturing centres for such village industries goods. Under the certificate given by KVIC, the petitioner appears to have been given recognition for manufacturing detergent etc. in respect of 27 manufacturing centres enumerated in the list appended thereto. However, village Iyava, Sanand does not find place in the said list. The petitioner had initially availed cash assistance from Gujarat State Khadi Gramodhyog Board for the purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting authority in its order dated 22nd January, 1998 has observed that under KVIC Bombay's certificate dated 12th April 1993, the petitioner Gujarat Khadi Pratishthan has been granted recognition with the condition of location of units or manufacturing centres for such village industries goods such as detergent powder, etc. The certificate provides a list of 27 manufacturing centres including Bavla, Dadriyana, Dhandhuka, Aniyali, Bhimji and Alampur in District Ahmedabad, but village Iyava, Sanand has not been included in the list. The Tribunal in the impugned order has concurred with the aforesaid finding of fact recorded by the adjudicating authority. On behalf of the petitioner the learned counsel is not in a position to show any material to the contrary to dislodge the aforesaid findings of fact recorded by the authorities below nor is he in a position to point out any material to the contrary. From the concurrent findings of fact recorded by the Tribunal, evidently that the petitioner as an institution, per se, has not been granted recognition by the KVIC, but it has been granted recognition conditionally, namely in respect of location of units or manufacturing centres for vill ..... X X X X Extracts X X X X X X X X Extracts X X X X
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