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TMI Blog2013 (12) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... factory of production for further manufacture of finished goods which are also specified goods, the clearance of such inputs for such use shall not be taken into account for the purposes of calculating the aggregate value of clearances under this notification. There appears to be a rationale behind this Explanation; firstly, when the value of the finished goods, which are exempted under different notifications, is to be excluded, having regard to the wording of Explanation II, on the same analogy, the value of inputs which are being used for manufacture of finished goods are also excluded as both are specified goods, subject, of course, to the limit of the notification - Secondly, the notification provides relief to small scale industri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firmed the demand of duty of Rs. 38,73,939/- and imposed a penalty of Rs. 2 lakhs. Commissioner (Appeals) set aside the adjudication order and allowed the appeal filed by the respondent. Hence, the Revenue filed this appeal. 3. The learned Authorised Representative on behalf of the Revenue submits that S. No. 13 of the Table appended to Notification No. 181/88-C.E., dated 13-5-1988 allowed nil rate of duty on Parts of Kerosene Wick Stoves. He submits that by Notification No. 64/94-C.E., dated 1-3-1994, the earlier Notification No. 181/88 was rescinded. Thereafter, Notification No. 41/94-C.E., dated 1-3-1994 allowed the nil rate of duty in respect of kerosene burner, kerosene stoves and wood burning stoves made of iron and steel. He s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision of the Hon ble Supreme Court in the case of Elso Machines Pvt. Ltd. v Collector of Central Excise reported in 1988 (38) E.L.T. 571 (S.C.). 6. After hearing both sides and on perusal of the records, we find that the dispute is as to whether Parts of Kerosene Stove captively used in the manufacture of kerosene stove would be eligible for exemption and covered under Explanation 6 to Notification No. 1/93-C.E., dated 1-3-1993. We find that the kerosene stove and parts thereof are classified under sub-heading no. 7321, which is a specified goods under Notification No. 1/93. The Explanation VI to the said notification reads as under :- Where any specified goods (inputs) are used for further manufacture of a specified goods within th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... monious interpretation which gives effect to all the parts of the notification and does not render any part thereof futile has to be adopted. 24. The said Explanation III clearly provides that For the purpose of computing the aggregate value of clearances under this notification, the clearances of any excisable goods which are chargeable to nil rate of duty or, which are exempted from the whole of duty of excise leviable thereon by any other notification (not being a notification where exemption from the whole of duty of excise leviable thereon is granted based upon the value of quantity of clearances made in a financial year) issued under sub-rule (1) of rule 8 of the said Rules, 1944, shall not be taken into account. (Emphasis suppli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... limit of the notification. Secondly, the notification provides relief to small scale industries; when the inputs which enjoys the exemption under the notification have already been dealt with, there is no reason why the value of the same inputs again be added for the purposes of aggregate value. It follows that the assessee would be entitled to the benefit of Explanation III while computing the aggregate value for the purposes of availing exemption under the notification. 9. In this view of the matter, we find no illegality in the order of the Tribunal. The appeals are, therefore, dismissed with costs. 8. The Tribunal in the case of Vindhyachal Process Corporation v. Commissioner of Central Excise, Bhopal - 2001 (136) E.L.T. 1382 (Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akes the view that it is not to be completely exempted in assessing the aggregate value as per the notification. According to the adjudicating authority, goods which are in the nature of inputs are also not to be taken into account for the purpose of calculating the aggregate value of clearances. What he observed is :- As far as party s submission that where the specified goods manufactured are used captively for further manufacture of other specified goods within the factory of production, the clearance of such specified goods which are in the nature of inputs is not to be taken into account for the purpose of calculating the aggregate value of clearances is concerned, I fully agree with them. After entering this finding, he states ..... X X X X Extracts X X X X X X X X Extracts X X X X
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