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TMI Blog2017 (7) TMI 757X X X X Extracts X X X X X X X X Extracts X X X X ..... nit for manufacture of synthetic detergent powder at Sabajpura near Patna. The dispute in the present case is relating to the eligibility of the appellant for exemption under Notification 88/1988-CE dated 01.03.1988. The said Notification grants full exemption from excise duty on the specified goods manufactured in rural area by registered co-operative societies. The Revenue entertained a view that the appellant is a registered co-operative society with the restricted validity of Patna Corporation area. As such they have no recognition as co-operative society in Sabajpura village where the excise unit is located. On this ground proceedings were initiated to deny the exemption. The original authority denied the exemption on this ground and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... position was clarified with reference to applicable legal provision of 1996 Act and bye laws made there under. It is clear that the registration is awarded to the claimant within the valid area namely Patna Municipal Corporation. It can be seen from the contents of the letter that the reference to manufacturing activity of the appellant has also been made and apparently there is no bar in the society registered with Patna authorities to have a village industry in the neighbouring village. The ld.Counsel also submitted copy of document dated 22.03.2001 issued by Khadi and Village Industries Board, Bihar recognizing the unit of the appellant. 4. The ld.AR supported the findings of the original authority. He submitted that the condition for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear that the appellants continue to be a co-operative society duly registered by the competent authority. They will be co-operative society for the purpose of the present Notification as the said Notification did not prescribe that registration of the society also should be in the area where the unit is located. In the present case a registered co-operative society is having the unit in rural area and manufacturing specified goods in terms of the said Notification. The facts and circumstances of the case regarding claim of exemption Notification, was brought to the notice of the Assistant Registrar, Patna Circle by the jurisdictional Superintendent of Central Excise vide his letter dated 31.03.2006. In fact the Superintendent specificall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Hon'ble Gujarat High Court in the case of Gujarat Khadi Pratishtan v. Union of India [2013 (287) E.L.T. 277 (Guj.)].
10. On perusal of the said case we note that the disputed unit which claimed exemption under Notification No.88/1988-CE was not one of the recognized units by the Khadi & Village Industries Commission. The facts of the present case are not similar to the issue decided by the Hon'ble Gujarat High Court. In fact in the present case, the unit is recognized by Bihar State Khadi and Village Industries Board.
11. In view of the above discussions and analysis we find that the impugned order is not legally sustainable. Accordingly the same is set aside and the appeal is allowed.
(Pronounced and dictated in the open court) X X X X Extracts X X X X X X X X Extracts X X X X
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