TMI Blog1984 (1) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... and diethul-meta-amino phenol (DEMAP) falling under Tariff Item No. 14D and Tariff Item No. 68 of the Central Excise Tariff. The appellants have stated that they filed the necessary declaration for availing of exemptions from licensing control and also from payment of duty as required under Notifications Nos. 111/78, dated 9-5-1978, 89/79, dated 1-3-1979, No. 105/80, dated 19-6-1980, No. 71/78, dated 1-3-1978 and No. 80/80, dated 19-6-1980, before the Central Excise Officers. On 16-9-1981 some Central Excise Officers visited the appellants factory and seized certain documents, including audited balance sheet for the year ending 31-3-1980 along with the Director s report. They also recorded the statements of the Chief Executive of the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the DEMAP sold during the year 1980-81 and imposed a penalty of rupees ten thousand on the appellants. In their appeal to the Tribunal, the appellants have stated that the Order-in-Original passed by the Collector of Central Excise, Baroda, is not correct and legal, since it is based on incorrect interpretation of the Notification Nos. 89/79, dated 1-3-1979 and 105/80, dated 19-6-1980. They referred to the Explanation appended to the Notification No. 89/79 and 105/50 which reads as For the purpose of determining the value of any capital investment only the face value of the investment at the time when such investment was made shall be taken into account. They also referred to the relevant instructions issued by the Government of India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods and specified electrical goods, one of the criteria for eligibility is the value of investment on plant and machinery . It is clear from this that the monetary limit for the purpose of computation of value of investment on plant and machinery under these various items of the Tariff, namely, Items No. 68, No. 14, Nos. 33A, 37A and 37AA, 33F and No. 33B is fixed by the Government keeping in view the definition of small scale units and the same is to be computed on uniform basis. The Consultant for the Appellants also produced a copy of the certificate issued by the Director of Industries wherein the appellants factory was registered as a small scale unit. He produced a certificate from M/s. Mahendra Shah Associates, the Chartered Accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory of the appellants was more than ₹ 10 lakhs. The appellants have now produced a certificate dated 23-12-1983 from Messrs Mehendra Shah Associates, their Chartered Accountants, to the effect that the value shown in their balance sheet, namely ₹ 10,22,057 representing the value of the plant and machinery as fixed assets for the year ending 31-3-1980 higher than the limit of ₹ 10 lakhs. The Bench also noted that in his statement dated 17-11-1981 the Chief Executive of the Company had clarified that the total of fixed assets on plant and machinery, namely ₹ 10,22,057 included ₹ 40,000 paid by way of technical know-how and ₹ 55,403 as proportionate incidental expenses capitalised. 3. The Collector in h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 1-3-1979. He has, therefore, concluded that the capital investment on plant and machinery in this case is in excess of ₹ 10 lakhs. He has further held that the appellants have suppressed the facts relating to the correct and proper value of the plant and machinery installed by them since these were contrary to the declarations already filed by them with the department. We are afraid that we are not in agreement with the reasonings and the conclusions arrived at by the Collector. The Trade circulars and other instructions on the subject are clear enough as guidelines for computing the value of capital investment on plant and machinery and the appellants could justifiably assume that certain expenses incurred by them as stated above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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