9911796707
TMI Blog2017 (6) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... in appeal against the impugned order denying the benefit of Notification No. 8/2003-CentraI Excise dated 01.03.2003. 2. The facts of the case are that the appellant is engaged in the manufacture of PP Medicaments. They are manufacturing goods affixing their own brand name and also with the brand name of other person. They were also availing Cenvat credit facility. From the scrutiny of ER-3 returns, it was observed that during the period 01.10.2005 to 30.09.2006 they have availed the exemption under Notification No. 8/2003-Central Excise dated 01.03.2003 on the goods fixed their own brand name and simultaneously cleared the goods affixed with the brand name of other persons on payment of duty from the beginning of the financial year availing and utilizing Cenvat credit on the clearances of these goods affixed with the brand name of other persons. Therefore, it was alleged against the appellant that they violated the conditions laid down in para 2(i) and (iii) of the said notification. Therefore, they are not entitled for the benefit of exemption notification for own clearances. In these circumstances, proceedings were initiated against the appellant and impugned order was passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gible for any exemption and excise duty thereupon has to be paid. Once we understand the scheme of the Notifications in the aforesaid perspective, which according to us is the only manner in which it has to be understood, it becomes apparent that so far as manufacture of branded goods of third party on job work basis by the SSI Unit is concerned, they are to be dealt with differently 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 respect of its own products manufactured by the SSI Units is concerned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailing full exemption as per the Notfn. No. 175/86 in respect of certain specified goods could not also avail the modvat benefit in respect of certain other specified goods. 8.1 Notfn. No. 175/86, dated 1-3-1986 extended concessional rate of duty on first clearances of specified goods of value of rupees seven and half lakhs while availing modvat credit on inputs or full exemptions benefit for such goods without the benefit of modvat credit. The Notfn. also provided lesser benefit for further clearances in excess of the above aggregate value under both the options for higher slabs/aggregate value of clearances. In computing the aggregate value of clearances for the purposes of exemption under both the options, the notification did not require that the goods bearing brand name of third parties should be excluded. The following explanations, inter alia, governed computation of the above aggregate value for the Notfn. Explanation IV - For the purposes of this notification, where the specified goods manufactured by a manufacturer, are affixed with a brand name or trade name (registered or not) of another manufacturer or traders, such specified goods shall not, merely by reason of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal. 5. Considering the fact that the issue came up before the Hon ble Apex Court in the case of Nebulae health Care (supra), and which has been followed by this bench in the case of IDMA Labs Limited Vs. CCE, Panchkula. The Tribunal vide final order No. 61784/2016 dated 27.12.2016 has held as under: - 5 . Considering the fact that the issue came up before the Hon ble Apex Court in the case Nebulae Health Care Ltd. reported in 2015 (325) ELT 431 (SC) which has been followed by this Tribunal in the case of League Laboratories Ltd. reported in 2016 (342) ELT 131 (Tri. Chd.) wherein the facts of the case are as under: 2. The facts of the case are that the appellant is engaged in the manufacturing of medicines in their own brand name and also the brand name of other persons. An investigation was conducted on the factory premised of the appellant and on scrutiny of record, it was observed that during the period of 2005-2006, the appellant has availed the exemption under Notification No. 8/2003-CE dated 01.03.2003 on the goods affixed with their own brand name and simultaneously cleared goods affixed with the brand name of other person on payment of duty and by avai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption to first clearances of specified goods upto the value of ₹ 30,00,000/- and concessional duty on subsequent clearances in case of manufacturer having clearances not exceeding ₹ 3,00,00,000/- in the preceding financial year was provided. In paragraph 4 of this Notification, it was stated that the exemption contained in the said Notification would not apply to the specified goods bearing a brand name or trade name, whether registered or not, of another person. The said para 4 reads as under: 4 The exemption contained in this notification shall not apply to the specified goods, bearing a brand name or trade name (registered or not) of another person: Provided that nothing contained in this paragraph shall be applicable to the specified goods which were component parts of any machinery or equipment or appliances and cleared from a factory for use a original equipment in the manufacture of the said machinery or equipment or appliances, and- (i) In a case where the clearance of such specified goods are within the first clearance upto an aggregate value not exceeding rupees thirty lakhs in a financial year, the manufacture of the specified goods gives a de ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
