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TMI Blog2016 (11) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... e excise duty is paid by the manufacturer on such branded goods manufactured, the brand name whereof belongs to another person, on job work basis, the SSI Unit would be entitled to CENVAT/MODVAT credit on the inputs which were used for manufacture of such goods as on those inputs also excise duty was paid. The appellant is entitled to avail the credit and the appellant is entitled for SSI exemption without including the goods manufactured on job work for third party under the brand name - appeal allowed - decided in favor of appellant-assessee. - Appeal No. E/ 1273/2008-Ex(DB) - FINAL ORDER NO. 61394/2016 - Dated:- 19-9-2016 - Mr. Ashok Jindal, Member (Judicial) And Mr. Devender Singh, Member (Technical) Shri J.P. Kaushik, Advoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng one of the two concessions, i.e. either on the Modvat scheme or SSI exemption of 100 Lakhs. As such it appeared that the appellant was not allowed to simultaneously avail madvat and full exemption under Notification No. 8/2003 dt. 01.03.2003. A show cause notice was therefore issued to appellant proposing to recover duty on the goods cleared availing exemption under Notification No. 8/2003 dt. 01.03, 2003 during the period Oct, 2005 to Sept, 2006. The matter was adjudicated by the Additional Commissioner by denying the benefit of Notification No.8/03-CE. The said order was challenged before the Commissioner (Appeals) who upheld the adjudication order of the adjudicating authority. Aggrieved with the said order, the is before us. 3. Le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 9/99-CE Proviso to Para 3 Para 3 Provided that for the purpose of computing the aggregate value of clearances under this paragraph, the clearances of any excisable 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, shall not be taken into account; For the purposes of determining the aggregate value of clearances for home consumption, the following clearances shall not be taken into account; For the purposes of determining the aggregate value of clearances for home consumption, the following clearances shall note ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 followed... Provided further that nothing contained in this paragraph shall be applicable to the specified goods where a manufacturer affixes the specified goods with a brand name or trade name (registered or not) of the Khadi and Village Industries Commission, the State Khadi and Village Industries Board, the National Small Industries Corporation or the State Small Industries Development Corporation. machinery or equipment or appliance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other manufacturer or trader. another manufacturer or trader, such specified goods shall not, merely by reason of that fact, be deemed to have been manufactured by such other manufacturer or trader. 17. A holistic reading of the Notification, in the light of the other paragraphs, brings into focus the overall scheme. It, inter alia, provides that the clearances bearing the brand name or trade name of third parties which are ineligible for grant of this exemption, for the purposes of determining aggregate value of clearances for home consumption, are not to be included. These Notifications also make it clear that the exemption contained therein is not to apply to the specified goods bearing a brand name ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the sense that they do not come within the ambit of exemption on which normally excise duty, as per the provisions of the Act, is payable. As a sequitur, it also follows that once excise duty is paid by the manufacturer on such branded goods manufactured, the brand name whereof belongs to another person, on job work basis, the SSI Unit would be entitled to Cenvat/Modvat credit on the inputs which were used for manufacture of such goods as on those inputs also excise duty was paid. To put it otherwise, these branded goods manufactured by the SSI Units meant for third parties are regulated by the normal provisions of excise law and will have no bearing or relevance insofar as availing the benefit of those exemption notifications in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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