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TMI Blog2017 (4) TMI 1120X X X X Extracts X X X X X X X X Extracts X X X X ..... nts have submitted the Form H against their supply made to merchant exporter his responsibility is over after production of proof of export to the department. Thereafter the clearance against Form H has to be treated as clearance of export and same is not includable in the aggregate value for the purpose of SSI exemption N/N. 8/2003-C.E - appeal dismissed - decided against Revenue. - E/39/09 & E/CO/26/09 - A/86883-86884/17/SMB - Dated:- 17-4-2017 - Shri Ramesh Nair, Member (Judicial) Shri V.K. Shastri, Asstt. Commissioner (AR) for the appellant Shri R.V. Shetty, Advocate for the respondent ORDER The fact of the case is that the appellant is engaged in the manufacture of pneumatic tools and spares falling under CSH 8467 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d circular dated 25.07.2002 prescribed the condition that form H as proof of export can be accepted only in case when the goods are directly exported from the premises of the manufacturer. In this case the goods were sold to the merchant exporter as a domestic sale, therefore the same is not in accordance with the condition prescribed in the Board circular. Therefore, clearances made against Form H cannot be accepted as export clearance. Hence the value thereof has to be included in the aggregate value as DTA sale. 3. Shri R.V. Shetty, ld. counsel for the respondent taking support from the order of the Commissioner (Appeals) submits that the Board circular has been misinterpreted by the Ld. AR for the reason that in every case of export ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purpose of availing SSI exemption. 2. The matter has been examined by the Board. The Central Excise Manual provides that in the case of export by exempted units through merchant exporter, the documents prescribed by Sales Tax Department, viz H-Form or ST-XXII Form or any other equivalent Sales Tax form, will be accepted as proof of export. It is clarified that this facility is available only in respect of the exempted units which undertake exports themselves or through merchant exporters directly from the unit itself. The facility is not available for the supplies made to any other domestic manufacturer who may or may not export its finished products. 5. From the reading of the above circular, it is seen that primarily the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e basic objective of such clearance are that if the manufacturer's goods cleared to merchant exporter has been exported, the same shall be treated as export and value thereof in not includible in the aggregate value of clearance for the purpose of SSI exemption. Therefore, the interpretation of the adjudicating authority does not serve the purpose of the circular and defeat the entire objective of the simplified procedure prescribed by the Board. It is obvious that in case of merchant exporter, the manufacturer supplier has no locus-standi to export the goods directly from his factory. It is always that first goods purchased by the merchant exporter and thereafter merchant exporter complied with all the procedure such as filing of docum ..... X X X X Extracts X X X X X X X X Extracts X X X X
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