9911796707
TMI Blog2004 (1) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the appellants manufacture electric kettle, iron, lunch box, food warmer, chapati maker, mixer grinder, electric lamp & plastic containers and claimed exemption in respect of electrical goods under Notification No. 8/98 or 8/99 and in respect of plastic containers, they availed of exemption under Notifications Nos. 5/98 and 5/99; that the Department has confirmed the demand of duty and imposed penalty on the ground that Notification No. 5/98 or 5/99 provides exemption based on quantity and as such the value of clearances effected under either of these Notifications is to be included in the aggregate value of clearances for the purpose of Notification No. 8/98 or 8/99; that Notification No. 5/98 exempts specified goods falling under H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year; that the expression "based on" connotes that the exemption is available depending on the condition mentioned therein; that for example, such a Notification is Notification No. 1/93-C.E.; that an assessee was entitled to avail the exemption if the value of clearances in the preceding financial year had not exceeded Rs. 3 crores; that this eligibility to the Notification was dependent on the value of clearances in the preceding financial year; that, similarly, there are exemptions the eligibility to which is dependent on the quantity cleared during a particular year; that Notifications No. 5/98 or 5/99, are not value based exemptions and the eligibility is not dependent on the value of clearances or quantity exceeding or non-exceeding a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, clearances which are exempt from the whole of the excise duty leviable thereon (other than an exemption based on quantity or value of clearances) under any other Notification or on which no excise duty is payable for any other reason shall not be taken into account; that as the clearances of the goods under Notification No. 5/98 or 5/99 is based on value of clearances, the value of these clearances are to be taken into account for the purpose of determining the aggregate value of clearances under Notification No. 8/98 or 8/99. He relied upon the decision in the case of Indian Airlines Ltd. v. C.C., Cochin, 2002 (150) E.L.T. 496 (T), wherein it has been held that Exemption Notification is to be construed strictly and benefit of ambigui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation up to a specified value and thereafter the exemption is partial. Both these Notifications, thus, provide exemption, full or partial, based on the value of clearances. If the value of clearances is up to Rs. 85 lakhs/Rs.100 lakhs, no duty of excise will be payable on the specified goods and if the aggregate value of clearances exceeds Rs. 85/100 lakhs, partial duty of 8 per cent will be payable. It is, thus, clear that the Notification is providing exemption based on value of clearances. For considering any Notification, whether it provides exemption based on quantity or value of clearances, it is not necessary that the exemption is depending on the value of clearances or quantity cleared during the preceding financial year. Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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