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TMI Blog2017 (8) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... g the benefit of value based exemption of SSI unit - Even as per the SCN, the value of clearances of plastic sheets for the disputed period on which duty is demanded is less than ₹ 50 Lakhs. There is no ground for denying the benefit of exemption on plastic sheets under N/N. 16/97 - appeal allowed - decided in favor of appellant. - E/479 - 480/2004 - FINAL ORDER No. 41236-41237/ 2017 - Dated:- 14-7-2017 - Ms. Sulekha Beevi, Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri T. Ramesh, Advocate for the appellants Shri S. Govindarajan, AC (AR) for the Respondent. ORDER Per Bench The appellants are engaged in the manufacture of Articles of Plastics for conveyance or packing of goods fall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. The plastic sheets emerging as an intermediate product during the manufacture of plastic cups (finished products) are exempted from duty by virtue of Notification No. 16/97-CE dated 01.03.1997. This Notification states that the plastic sheets are exempted up to the value of clearance of ₹ 50 Lakhs for home consumption. That captive consumption would be included in home consumption and therefore the appellants have rightly claimed the exemption for the plastic sheets. The allegation that the appellant cannot avail the exemption under the Notification No. 16/97-CE since they are already claiming the value based exemption of SSI unit is wrong since the exemption given to plastic sheets is by a separate notification and there is no ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on made by the Tribunal in the appellant s own case, on identical issue is also worth reproducing as under:- 2. The respondents are manufacturing articles of plastics such as disposable cups, bowls and plates etc. which are exempted under Notification No. 4/97-C.E., dated 1-3-1997. In the course of manufacture of these articles, plastic sheets emerge as an intermediate product which is captively consumed in the manufacture of the aforesaid articles of plastics. The lower appellate authority has held that the value of captively consumed plastic sheets being only ₹ 35,80,086/-, the respondents are eligible for small scale exemption under Notification No. 16/97-C.E., dated 1-4-1997. The Department has come in appeal on the ground th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken note of by the lower appellate authority. Under paragraph 3(a), the exempt clearances of plastic articles are in any case excluded from computing the aggregate value of clearance. Hence the respondents are, on merit, eligible for the small scale exemption in respect of the plastic sheets under the main provisions of Notification No. 16/97 as has been rightly allowed by the lower appellate authority therefore, we are of the view that the appeal filed by the Department has no merit and hence we dismiss the sam . 6. From the above discussions and following the judgment of the Tribunal in the appellant s own case, we are of the view that the demand is unsustainable. Accordingly, the impugned order is set aside and the appeal is allo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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