TMI Blog1987 (6) TMI 325X X X X Extracts X X X X X X X X Extracts X X X X ..... ion list and claimed exemption under Notification No. 89/79-C.E. The Collector said that they were not entitled to the exemption because the sum total of the value of the capital investment made from time to time on plant and machinery installed in the industrial unit of M/s. Devi Dayal Aluminium Industries was more than rupees ten lacs. This notification allows exemption to goods under cetain conditions, one of which was that an officer not below the rank of an Assistant Collector of Central Excise should be 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 lacs. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... installed in the industrial unit and that this would indicate that the value of all the plant and machinery installed at any point of time during the relevant period would need to be taken into consideration for computing the rupees ten lacs limit. The fact that machinery is dismantled or discarded would not be relevant for the purpose of the notification. It would appear from this paragraph that the Collector takes the value of Rs. 1,557,339.69 the value of the capital investment made by Hindustan Chains to be that sum total and that this value would place the assessees, M/s. Devi Dayal Aluminium, above the limit. 3. However, there is another provision which the Collector has not taken into account. Explanation 1 of the notification requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the investment. It is hard to understand how capital investment in plant and machinery would have a face value because I always associate face value with documents like promissory notes, bank drafts, cheques and so in which the face value of the note is not its real value. Thus a cheque may have a face value of Rs. 100,000/-, but its value in real terms is not more than a scrap of paper. Similarly, a promissory note or a bill of exchange will carry face values that have no relevance to their real intrinsic value. It is with such instruments i.e. instruments for negotiations and exchange, that I connect face values, that is, the value written on the face of the documents. But no plant and machinery has any value written on its face. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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