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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 ..... t the registration is given as co-operative society when the members of such society reside within the jurisdiction of Patna Municipal Corporation. As such we note that the registering authority justified the registration and also noted the starting of manufacturing facility in the village after due permission from the B.D.O. of Danapur. It is 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 ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rative 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 confirmed duty demand of ₹ 7,05,74,506/-. He also imposed equal amount of penalty on the appellant. 3. The ld.Counsel appearing for the appellant submitted that there are 3(three) basic conditions to avail the exemption under Notification No.88/1988-CE dated namely (A) unit should be located in a rural area, (B) should be run by a registe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 exemption is that the manufacturing unit should be run by a registered co-operative society is not fulfilled in the present case. The jurisdiction for validity of registration is within the corporation limits of Patna. When the society, even registered, operates a unit outside the corporation limits, then the exemption under the said Noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se 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 specifically alleged that the society clearly violates the area of operation mentioned in the registration and as such requested for action taken for de-registration of the said society. As already noted, in response to this letter the Assistant Registrar clarified the legal position vide his letter dated 16.05.2006. 8. In this regard we no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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