9911796707
TMI Blog1981 (1) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), and cleared for home consumption on or after the. first day of April in any financial year, by or on behalf of a manufacturer from one or more factories from the whole of the duty of excise leviable thereon, if an officer not below the rank of an Assistant Collector of Central Excise is satisfied that the sum total of the value of the capital investment made from time to time on plant and machinery installed in the industrial unit in which the goods, under clearance, are manufactured, is not more than rupees ten lakhs : Provided that this exemption shall not be applicable to a manufacturer if the total value of all excisable goods cleared by him or on his behalf in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... like Bharat Heavy Electrical Limited, Tiruchy. The further admitted case of the parties is that the raw materials are supplied to the petitioners by the said large consumers and the petitioners manufacture the products according to the specifications given by the said large consumers on receipt of certain conversion charges. The question for consideration is whether the exemption given as per the notification of the Government of India extracted above applies to the petitioners herein or not. It is not in dispute that the value of the plants and machinery installed in the industrial units of the petitioners does not in each case exceed rupees ten lakhs as provided for in the notification. Equally it is not in dispute that the value of the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncy to the construction of the notification in question. As we pointed out already, it is conceded that the petitioners are manufacturers and the goods manufactured by them are the goods falling under Item 68 of the First Schedule to the Central Excises and Salt Act, 1944. We have already pointed out the fact that it was further admitted that the total value of the capital investment made from time to time on plant and machinery installed in the industrial units of the petitioners herein is not more than rupees ten lakhs and the total value of the excisable goods cleared from the industrial units did not exceed rupees thirty lakhs. 5. Mr. U.N.R. Rao, the learned Counsel for the respondents laid great stress on the use of the words "by or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase has been set out in paragraph 6 of the counter-affidavit. The said paragraph reads as follows :- "Regarding Para 2, the facts are true except for the interpretation of Notification No. 176/77. The department held the view that as per proviso (1) to the said notification, any manufacture done for or on behalf of the main manufacturer are also incidental and ancillary to the manufacture as per Section 2 (f) of the Central Excises and Salt Act, 1944, and is not exempted when the main manufacturer is not exempt as per the notification." 6. Here again we find some difficulty in understanding the contents of this paragraph. Apart from that, the learned Counsel has not been able to draw our attention to any use of "main manufacturer" or "s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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