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TMI Blog2014 (12) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... ell as quantum of exemption. It is not in dispute in the present case that all the three appellants operated from the same factory premises. If that be so, the clearances effected during a financial year by all the three manufacturers have to be clubbed together for determination of eligibility as well as quantum of exemption. Conditions specified in clauses (v), (vi) and (vii) leaves no room for any doubt as to how to compute the exemption. It is a settled position in law that an exemption notification has to be construed strictly and if the conditions of exemption are not satisfied, the benefit cannot be extended. In this factual and legal scenario, we do not find any merits in the contention of the appellants that since they are disti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 22,27,754/- have been confirmed against M/s. Victory Container Depot, M/s. Victory Container Services and M/s. Victory Portable Cabins, respectively, by denying the benefit of Notification No. 8/2003-C.E., dated 1-3-2003 and clubbing the clearances of the excisable goods manufactured by them. In addition, interest liability on the above duty demands has been confirmed apart from imposing equivalent amount of penalties. Aggrieved of the same, the appellants are before us. 3. The learned Counsel for the appellants submits that these three appellants are different and distinct legal entities and they have maintained separate records for the procurement of raw materials, production and sale of excisable goods cleared from the factory. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n envisages clubbing of clearances both qua manufacturer and qua factory. If this is done, it can be seen that the appellants are not eligible for the duty exemption. As regards the invocation of extended period of time, the ld. AR submits that the appellants have never disclosed their activities to the department at any point of time. Therefore, the extended period of time has been rightly invoked for confirmation of duty demands. Accordingly, he pleads for putting the appellants to terms. 5. We have carefully considered the submissions made by both the sides. 5.1 Notification No. 8/2003-C.E. grants duty exemption to small scale manufacturers, subject to conditions. The condition stipulated for availing the exemption is that clearanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t nothing contained in this notification shall apply to a manufacturer who has availed the exemption under Notification No. 39/2001-Central Excise, dated the 31st July, 2001, published in the Gazette of India vide number G.S.R. 565 (E), dated the 31st July, 2001, in the same financial year. Table S. No. Value of clearances Rate of duty (1) (2) (3) 1. First clearances up to an aggregate value not exceeding one hundred lakh rupees made on or after the 1st day of April in any financial year. Nil 2. All clearances of the specified goods which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r clears the specified goods from one or more factories, the exemption in his case shall apply to the aggregate value of clearances mentioned against each of the serial numbers in the said Table and not separately for each factory; (vi) where the specified goods are cleared by one or more manufacturers from a factory, the exemption shall apply to the aggregate value of clearances mentioned against each of the serial numbers in the said Table and not separately for each manufacturer; (vii) the aggregate value of clearances of all excisable goods for home consumption by a manufacturer from one or more factories, or from a factory by one or more manufacturers, does not exceed rupees three hundred lakhs in the preceding financial yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of financial hardship, we have gone through the balance sheets produced by the appellants. From the balance sheets as on 31-3-2013, it is seen that all the firms are profit-making firms. The gross and net profits of the appellants are as below :- S. No. Name of the appellant Gross profit (Rs. Lakhs) Net profit (Rs. Lakhs) 1 Victory Container Depot 28.62 5.11 2 Victory Container Service 23.15 4.25 3 Victory Container Movers Victory Portable Cabins 17.31 2.96 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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