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2012 (9) TMI 493 - DELHI HIGH COURTSSI Exemption - Supply of OEM - manufacturing of parts and accessories of motor vehicles and tractors including trailers - department in SCN has alleged availing of exemption wrongly and irregularly through mis-statement – alleged that appellant availing two notification simultaneously – Held that:- Department could at best have added the value of OEMs at Rs. 43158 to the OEMs of Rs. 41358/- to the value of home consumption of Rs. 4,99,805.41 and after reducing therefrom the amount of Rs. 5 lacs allowed for clearance without payment of excise duty under Notification 71/78 to the small scale units. It is because of the reason that Notification No. 71/78-C.E., dated 1st March, 1978 provides that clearance for original equipment manufacturer shall be made at nil rate and in all cases, the value shall not exceed Rs. 5 lacs - petitioner availed remainder of excess duty under Notification No. 101/71 to the tune of Rs. 43158 but for this, he would have been entitled to avail the duty exemption on the entire value of home consumption of Rs. 4,99,805.41 under Notification No. 71/78 as this figure was below Rs. 5 lacs - even when it is to be treated as a case of non-disclosure under Notification 71-78, it occurred due to bona fide error on the part of the petitioner in mis understanding the provisions of two notifications. Petition is thus partly allowed. Order of the authorities below is set aside and it is held that the department would be entitled to recover the excise on the value of OEMs of Rs. 43158/- and the benefit claimed by the petitioner under Notification No. 71/78 shall be maintained. In the above circumstances no penalty or interest would be charged.
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