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TMI Blog2017 (11) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... ds to the merchant exporter under the brand name of merchant exporter. The case of the department is that the goods bearing the brand name of buyer is not eligible for SSI exemption. As regards the claim of the appellant that goods sold to the merchant exporter should not be included in the aggregate value of exemption. The department's stand is that since the goods were not cleared directly from the appellant's factory for export, the same was treated as domestic sale and not export. Hence, the value of such clearance was included in the aggregate value and consequently since the threshold exemption limit of Rs. 100 lakhs has exceeded the differential duty demand was confirmed. Being aggrieved by the order-in-original, the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2001-CE & 8/2002-CE. To support his arguments, he placed reliance on the following judgements: i) Universal Packaging - 2011 (264) ELT 147 ii) Vadapalani Press - 2007 (217) ELT 248 (Tri-Chennai) iii) Amar Packaging Industries - 2009 (217) ELT 574 (Tri-Ahmd) iv) Hare Krishna Boxes Pvt. Ltd. - 2011 (267) ELT 525 (Tri-Mumbai) v) Ramani Plastics Pvt. Ltd - 2015 (317) ELT 343 3. Shri Sanjay Hasija, Ld. Superintendent (AR) appearing on behalf of the Revenue reiterates the findings in the impugned order. He submits that since the appellants have manufactured and cleared the goods bearing the brand name of another person, the same is not eligible for SSI exemption. In support, he placed reliance on the following judgements: i) Koroes I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovided that the form prescribed by the Sales Tax should be accepted as proof of export. It is pertinent to note that prescribed form of sales tax such as Form-H, Form-14B are exclusively meant for procurement of goods, which are meant for export. Such forms are issued only when the goods procured domestically are physically exported by the merchant exporter. Therefore, the Board has very consciously decided to accept such forms as proof of export. As regards the contention of the lower authorities that respect of the goods were not undertaken directly from the unit of the appellant is not of very significant for the reason that the important aspect is that the goods sold to the merchant exporter should be against Form-H/Form-14B. The very ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be accepted as proof of export. It is clarified that this facility is available only in respect of the exempted units which undertake exports themselves or through merchant exporters directly from the unit itself. The facility is not available for the supplies made to any other domestic manufacturer who may or may not export its finished products. From the reading of the above Circular, it is seen that the above procedure is primarily applicable in respect of small scale exempted units to export their goods either directly or through merchant exporter and documents prescribed by Sales Tax Department is Form H or ST-XXII Form or any other equivalent Sales Tax Form is acceptable as proof of export. The adjudicating authority interpreted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of clearance for the purpose of SSI exemption. Therefore, the interpretation of the adjudicating authority is very narrow and defeats the entire objective of the simplified export procedure prescribed by the Board. It is very obvious that in case of merchant exporter, the manufacturer supplier does not have locus-standi to export the goods directly from his factory. It always happens that first goods purchased by the merchant exporter and thereafter merchant exporters do all the procedures such as preparation and filing of documents for export to the Customs authority. Therefore, the assumption of the adjudicating authority that the goods should have been exported directly from the appellants units is misleading of the clarification given i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken a stand that if the supply to the merchant exporter is against Form14B/Form-H, the same will be treated as export clearance. Therefore, in the present case the goods admitted supplied against Form 14-B which should be treated as export and the same should not be included in the aggregate clearance value of Rs. 100 lakhs provided under Notification No.8/2001-CE & 8/2002-CE. However, the adjudicating authority as well as the first appellate authority have not verified the factual aspect and they have rejected the claim of the appellant's goods sold to the merchant exporter is export clearance only on the basis that goods were not exported directly from the appellant's factory. In this scenario, we are of the view that the matter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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