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TMI Blog2025 (4) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... fiable under Chapter Sub-Heading Nos. 48239019 and 39209490 of the Central Excise Tariff Act, 1985.Proceedings were initiated against the appellant by way of issuance of a Show Cause Notice dated 08.04.2014 wherein central excise duty amounting to Rs.4,67,305/- (inclusive of cesses)was demanded on the ground that the total value of clearances of the appellant during the Financial Year 2012-13 exceeds the monetary limit of SSI exemption of Rs.1.5 crores as provided under Notification No. 08/2003-C.E. dated 01.03.2003. Accordingly, central excise duty has been demanded vide the above notice on the amount of Rs.37,80,790/-over and above the exemption limit of Rs.1.5 crores in terms of Notification No. 08/2003-C.E. dated 01.03.2003. 1.1. The s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant had exceeded the said monetary exemption limit of Rs.1.5 crores as provided under the said Notification. In this regard, the appellant has contended that as per Circular No. 958/1/2012-CX dated 13.01.2012, the Government of India has revised the treaty of trade between India and Nepal and exports to Nepal have been put at par with exports to other countries (except Bhutan) w.e.f. 01.03.2012. Therefore, the Ld. Counsel for the appellant contends that the value of exports made to Nepal are not includable while ascertaining the total value of clearances for the purpose of arriving at the value of clearances under Notification No. 08/2003 ibid. 3.1. He also points out that as per the said Circular, the Department ought to have amen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Notification No. 08/2003-C.E. dated 01.03.2003, the value of clearances made to Nepal and Bhutan were includable for the purpose of computation of value of clearances to arrive at the exemption limit provided under the said Notification. Accordingly, he supported the impugned order confirming the demands against the appellant. 5. Heard both sides and perused the appeal records. 6. We find that the appellant has been availing the benefit of Notification No. 08/2003-C.E. dated 01.03.2003. As per this Notification, the goods cleared by the appellant are totally exempted up to the value of clearances of Rs.1.5 crores. As per the Notification No. 08/2003-C.E. dated 01.03.2003, the value of exports made to Nepal and Bhutan were included fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urposes, export to Nepal would be treated on par with export to any other country. For the purpose of SSI exemption under said Notification No. 8/2003, however, it would continue to be treated as clearances for home consumption. This will be plainly discriminatory vis-à-vis other SSI units who might be having exports to countries other than Nepal as compared to the SSI units like the petitioners whose substantial exports may be to Nepal. Under such circumstances, the former set of SSI units would claim total exclusion of all clearances made by them to all countries while computing exemption limit under Notification No. 8/2003, whereas the later would be subjected to inclusion of value of exports made to Nepal for computation of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Notification No. 08/2003-C.E. 6.2. In view of the above decision of the Hon'ble High Court, we find that the value of clearances to Nepal are to be considered at par with exports made to other countries and hence, such values are not includable for the purpose of computation of the value of exemption limit under Notification No.08/2003-C.E. dated 01.03.2003. Accordingly, we hold that the demand confirmed in the impugned order, by including the value of exports made to Nepal, is not sustainable and consequently, the same is set aside. 6.3. As the demand itself does not survive, the question of demanding interest thereon or imposing penalties does not arise. 6.4. Further, since there is no liability to central excise duty on the part ..... X X X X Extracts X X X X X X X X Extracts X X X X
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