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TMI Blog2017 (7) TMI 553X X X X Extracts X X X X X X X X Extracts X X X X ..... aggregate value of clearances for home consumption the clearances bearing the brand name of another person which is ineligible for grant of exemption only cannot be included. Since the clearances bearing the brand name of Brittania Industries is eligible for exemption based on rural clearances and the value of such clearances also has to be included in the aggregate value of clearances. When so determined, the value of clearances exceeds 4 crores/Rs. 3 crores and therefore in our view the duty demand raised is right and proper - appeal dismissed - decided against appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... ds should not be taken into account for computing the aggregate value of ₹ 4 crore in a financial year. c) However, specified goods manufactured with the brand name of another person in a factory located in a rural area have been rendered eligible to avail the exemption under para 4 (c) of notification No. 8/2003 dated 01.03.2003. In terms of para 3 (a) of Notification 8/2003, clearances bearing the brand name of another person which are ineligible for the grant of this exemption in terms of Para 4 only shall not be taken into account for determining the aggregate value of ₹ 4 crores during the preceding financial year. d) Though the appellants were eligible for exemption from payment of Central Excise duty on the goods manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese appeals. 3. On behalf of the appellants, Ld. Counsel Shri S. Murugappan, Advocate, submitted that the appellants have not claimed the benefit of rural area exemption provided in the notifications. Though the appellants may be eligible for the rural area exemption as the factory of the appellant is located in the rural area the same has not been availed and the appellants were paying excise duty on the goods cleared in the brand name of another viz., Britania Industries Ltd. If the value of the goods cleared in the appellant s brand name alone is taken for determining the aggregate value of clearances, the same would be below ₹ 1 crore and the appellants would be eligible for SSI exemption. He argued that the appellant cannot be p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account for determining the aggregate value of ₹ 4 crores during the preceding financial year. The unit of the appellant s factory was situated in a rural area and was eligible to avail exemption under para-4 (c) of the Notification No. 8/2003. Thus when the goods are eligible for exemption, the same has to be included in the assessable value to determine the aggregate value of clearances to consider whether the appellants are eligible for SSI exemption or not. While so computing the clearances of goods manufactured by the assessee for the relevant period exceeds ₹ 4 crores and therefore are not eligible for the benefit of the exemption Notification No. 8/2000 and 8/2003, in respect of goods manufactured with their own brand na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufactured in a factory located in a rural area." 6. The contention put forward by the ld. Counsel is that though the factory is located in a rural area, appellant has not opted to avail the exemption benefit eligible to a factory located in a rural area. That when the appellant has not exercised the option to avail the benefit of rural area exemption, the value of those clearances cannot be taken into account for the purpose of determining the aggregate value of clearances. The ld. Counsel seeks to draw support from the judgment of the Hon'ble Supreme Court in the case of Mahendra Mills Ltd. (supra). We are afraid that the said judgment cannot be applied to the facts of the present case for the reason that the said case deals with the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such clearances also has to be included in the aggregate value of clearances. When so determined, the value of clearances exceeds ₹ 4 crores/Rs. 3 crores and therefore in our view the duty demand raised is right and proper. This being so, the appellant cannot, for whatsoever reason or perception that he may have, choose to observe the notification in piecemeal. Accordingly, the clearances of goods with brand name of others, notwithstanding the fact that he may have chosen to pay duty thereon, will be necessarily taken into account for calculating aggregate value of clearances. When this is done, the aggregate value for the preceding year will then exceed the limits laid down in the Notification No. 8/2003. Therefore, the assessee can ..... X X X X Extracts X X X X X X X X Extracts X X X X
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