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2012 (12) TMI 921 - AT - Central ExciseSSI exemption - Limit to SSI Exemption - Revenue contends that respondent are not a separate manufacturer inasmuch as they are a division of the main manufacturer M/s. Premium Suitings (P) Ltd., UPSIDC Industrial Area, Jainpur, Kanpur and as such the aggregate value of the clearances of all excisable goods for home consumption from one or more factories of the respondent during the previous financial year were in excess of the threshold limit - Held that:- The benefit of SSI exemption is available to a manufacturer manufacturing the specified goods only if the clearances of all excisable goods manufactured by that manufacturer in one or more factories and cleared for home consumption during the previous financial year is within the specified threshold limit, which during the period of dispute was Rs. 3,00,00,000/- (Rupees Three crores). In this case, it is undisputed that the respondent i.e. chemical division of M/s. Premium Suitings (P) Ltd. is part and parcel of the main manufacturer engaged in manufacture of textiles and, therefore, the respondent unit i.e. chemical division of M/s. Premium Suitings (P) Ltd. cannot be looked at in isolation for the purpose of determining its eligibility for SSI exemption and for this purpose, the clearances for home consumption of all excisable goods of the respondent unit have to be clubbed with the clearances of excisable goods manufactured by other factories of the respondent-company during the previous financial year and on that basis, the respondent would not be eligible for SSI exemption. We, therefore, hold that the impugned order extending the benefit of SSI exemption to the respondent unit is contrary to the provisions of law and is not sustainable - Decided in favour of Revenue.
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