9911796707
TMI Blog2024 (10) TMI 1337X X X X Extracts X X X X X X X X Extracts X X X X ..... II. Once the value of these clearances is deducted from the total turnover of the appellant, what remains is the value of dutiable goods during different years which are recorded in the impugned order by the Commissioner. During the entire period the value of such clearances had not exceeded Rs. 7.5 lakhs in any financial year even as per the impugned order. Condition No. 4 stipulates that the assessee must have been registered with the Director of Industries but the proviso therein clarifies that if the value of clearances during the preceding financial year or the current financial year did not exceed and was not likely to exceed Rs.7.5 lakhs, this condition shall not apply. Explanation II clarifies that the value of clearances does not i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 28.03.2008 which was assailed before this Tribunal by the appellant in Excise Appeal No. 1343 of 2008 which was heard along with two appeals filed by the Directors. All three appeals were disposed of by this Tribunal by Final Order No. 52515-52517/2017 dated 24.03.2017. 2. The appellant was manufacturing soya nuts and wheat puffs but was not registered with the central excise department. SCN dated 21.03.1997 was issued to the appellant demanding duty and proposing to impose penalties. Under consideration before this Tribunal in Appeal no. 1343 of 2008 was the classification of soya nuts and wheat puffs and the duty. This Tribunal held that the most appropriate classification for soya nuts was central excise tariff heading [CETH] 21.07.99 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct Soya Nuts, such goods cleared in unit containers with brand name will be classifiable under 2109 91. The clearances of such goods will be liable to payment of excise duty at appropriate rates. The assessee, during the course of hearing has submitted a Chartered Accountant s certificate in which the percentage of sales made to government vis- -vis total sale during the year 1992-93 to 1996-97 has been shown. From the above certificate of the Chartered Accountant, we note that quantities, varying from 91.55% to 98.80% in various years have been made to government (ICDS) which, as discussed in the above paragraphs, will be entitled to clearance at nil rate of duty. However, the balance clearance made in unit containers will be liable to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... representative appearing for the department and perused the records. 5. According to Shri Mullick, duty could not have been confirmed because it was entitled to the benefit of SSI exemption under Notifications 175/86-CE dated 01.03.1986 and 01/93-CE dated 28.02.1993. It is the submission of Shri Mullick that the total value of the goods cleared was below the threshold limit prescribed under the above two notifications and, therefore, no central excise duty was payable at all. 6. According to Shri Unmesh Kumar, learned authorised representative for the Revenue, the SSI exemption was available subject to some conditions including the conditions in para 4 of Notification No. 175/86-CE which specifies that the exemption shall be applicable only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learances of all dutiable goods in each year even according to the impugned order had not exceeded Rs.7.5 lakhs. Therefore, the appellant was entitled to the benefit of the exemption notification and did not have to fulfil the condition no. 4. 8. We have considered the submissions by both sides. 9. It is undisputed that the appellant was clearing goods most of which were supplied to ICDS which were exempted anyway regardless of the SSI exemption. These have to be excluded from the aggregate value of clearances under the notification in view of the Explanation II. Once the value of these clearances is deducted from the total turnover of the appellant, what remains is the value of dutiable goods during different years which are recorded in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere a manufacturer who is manufacturing specified goods in a factory has availed of the exemption in pursuance of clause (A) of the said proviso in any of the preceding financial year. Provided also that nothing contained in the preceding proviso shall apply on and from 22nd day of May, 1992 to the 31st day of March, 1993. Explanation II. For the purposes of computing the aggregate value of clearances under this notification, the clearances of any excisable goods which are chargeable to nil rate of duty or, which are exempted from the whole of the duty of excise leviable thereon by any other notification (not being a notification where exemption from the whole of the duty of excise leviable thereon is granted based upon the value or quantit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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