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TMI Blog2015 (6) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... oods falling under Chapter 84 worth Rs. 23,10,202/- (both free of excise duty as also on payment of duty) and also goods falling under Chapter 87 worth Rs. 6,65,088/-. Thus, as on 7.7.1991, they had cleared goods of value of Rs. 30 lakhs. The appellant's claim was that they can clear goods free of excise duty upto Rs. 30 lakhs out of which they can clear goods worth Rs. 20 lakhs falling under Chapter 84 and another Rs. 10 lakhs for the goods falling under Chapter 87, even though in between they have cleared goods falling under Chapter 84 on payment of duty. The Revenue's case is that as per the wordings of Notification 175/86, once clearances of the specified goods cross the limit of Rs. 30 lakh, the benefit of Notification 175/86 cannot be extended. 2. None appeared on behalf of the appellant. However, the appellant vide their submissions requested that the matter may be decided on merits. In support of their contention, they have quoted the following case laws: (i) CCE, Pune vs. Rathod Industries (final order No. 1094/99-B dated 26.7.1999); (ii) ELP Em Industries vs. CCE reported in 1989 (43) ELT 599 (T); (iii) CCE, Cochin vs. Kerala State Bamboo Co-op Ltd. reported i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r dated 1st June, 1992 the Assistant Collector levied duty. This duty was levied not on the ground that the inputs were dutiable as the final product was exempted. The duty was levied on the ground that the clearances exceeded Rs. 30 Lakhs during the relevant period. This was not the basis of the show cause notice. It is well settled law that duty cannot be levied on a basis not set out in the show cause notice. The Collector (Appeals) set aside the duty by following the decision of the Tribunal in the case of Purushotham Goculdas Plywood Company v. CCE reported in 1990 (47) E.L.T. 30 (T). The decision holds that if the total clearance does not exceed Rs. 30 Lakhs then the benefit of the Notification can be availed of. CEGAT has refused to interfere on the ground that the earlier decision has not yet been over-ruled. We are told that now the question covered by Purushotham Goculdas Plywood Company has been referred to a Larger Bench for reconsideration. As we have already held that this the ground on which duty was not the ground on which duty was levied, we see no need to go into this question. We leave this question open to be decided by the Larger Bench. In this view we have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learances of (b) the specified goods of an aggregate value not exceeding rupees sixty lakhs) immediately following the said clearances of the value specified in clause (a) from so much of the duty of excise leviable thereon which is specified in the said Schedule (read with any relevant notification issued under sub-rule (1) of Rule 8 of the said Rules) [or sub-section (1) of Section 5A of the Central Excises and Salt Act, 1944 (1 of 1944) as is equivalent to an amount calculated at the rate of 10% ad valorem : Provided that the amount of duty of excise payable on the specified goods under sub-clause (i) of clause (a), or, as the case may be, under this clause, shall not be less than an amount calculated at the rate of 5% ad valorem : Provided further that the aggregate value of clearances of the specified goods in terms of clause (a) and clause (b) of this paragraph taken together, shall not exceed rupees seventy five lakhs. 2. The aggregate value of clearances of the specified goods from any factory by one or more manufacturers in any financial year under clauses (a) and (b) of paragraph 1, shall not exceed rupees thirty lakhs and sixty lakhs respectively : Provided that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under this notification plus an amount calculated at the rate of 5% ad valorem, or at the rate of duty otherwise applicable but for this notification, whichever is less : Provided that nothing contained in this paragraph shall apply in respect of the inputs which are received in any factory after the 31st day of March, 1989. Nothing contained in this notification shall apply 6. to the clearances of specified goods for home consumption during the period beginning with the 25th day of March, 1986 and ending with the 31st day of March, 1986 (both days inclusive). The exemption contained in this notification shall 7. not apply to the specified goods where a manufacturer affixes the specified goods with a brand name or trade name (registered or not) of another person who is not eligible for the grant of exemption under this notification : Provided that nothing contained in this paragraph shall be applicable to the specified goods which are component parts of any machinery or equipment or appliances and cleared from a factory for use as original equipment in the manufacture of the said machinery or equipment or appliances and the procedure set out in Chapter X of the said Rules is f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 5% ad valorem. The same limits will apply to aggregate (7) value of clearances for specified goods for one or more manufacturers in any financial year subject to limit of Rs. 75 lakhs for the aggregate value of clearances from any factory by one or more manufacturers in any financial year. (8) The eligibility criterion is that the aggregate value of clearances of excisable goods for home consumption in the previous financial year should not have exceeded Rs. 150 lakh. The applicability clause is clause 4 of the Notification . 13. The exemption under notification is for specified goods cleared for home consumption on or after the first day of April in a financial year. The limit of Rs. 30 lakhs is placed on the aggregate value of first clearances on specified goods. Within the first clearances on specified goods upto Rs. 30 lakhs the aggregate value of exemption is available only upto Rs. 15 lakhs in respect of aggregate value of clearances on specified goods under Clause (a)(ii) of in any chapter of the Schedule. In other words, the ceiling of Rs. 15 lakhs is within the ceiling of Rs. 30 lakhs for the first clearances. Therefore the question of clearances on specified goods in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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