9911796707
TMI Blog2018 (7) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... value of clearances for the appellant has not exceeded the SSI exemption limit. The factory having been taken on lease by the appellant, he has to be considered as an independent manufacturer. Further, the earlier manufacturer Shri D. Kalaiarasan has cleared the goods on payment of excise duty and has not availed any exemption benefit. Only because the earlier manufacturer was not availing exemption benefit, the appellant cannot be compelled to pay excise duty even though the clearances are below the SSI limit. There is no case that both the manufacturers were clearing goods from the same factory during the relevant period. Thus, clause (vi) of para 2 of the Notification is not attracted in the present case. Demand of duty do not sus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ietor of M/S. Sri Packs on 10.11.2006. The appellant availed SSI exemption vide Notification No. 8/2003-CE dated 1.3.2003. The earlier manufacturer/proprietor Shri D. Kalaiarasan was doing manufacturing activity in the premises only upto 9.11.2006. Vide lease deed dated 10.11.2006, the appellant had started manufacturing activities using the very same machineries. The earlier manufacturer Shri D. Kalaiarasan had surrendered the registration on 5.12.2006. Meanwhile, he cleared certain raw materials as well as finished goods by paying excise duty. The earlier manufacturer did not carry out any manufacturing activity after 9.11.2006 and had merely cleared the finished goods which were in stock. The department has proceeded to deny the SSI exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant has started operations in the factory from 10.11.2006. Therefore, the appellant cannot be considered as an independent manufacturer and the SSI exemption is not available to the appellant. 4. Heard both sides. 5. The allegation raised against the appellant is that they have wrongly availed the SSI exemption limit. It is not disputed that the appellant M/s. Sun Pack, Proprietor Shri S. Chandrasekar has started the manufacturing operations in the factory only with effect from 10.11.2006. It is also seen that they have cleared goods worth ₹ 66,60,401.92 during the period from 10.11.2006 to 31.3.2007. Thus the aggregate value of clearances for the appellant has not exceeded the SSI exemption limit. However, the earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X
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