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2013 (12) TMI 29 - AT - Central ExciseEligibility for SSI Exemption under Notification No. 1/93 - Parts of Wick Kerosene Stoves captively consumed in the manufacture of kerosene stoves - Whether parts of kerosene stove would be eligible for exemption which would be covered under Explanation 6 to Notification No.1/93 – Held that:- The kerosene stove is classified under sub-heading no.7321, which is a specified good under Notification No.1/93 – Relying upon Elso Machines Pvt. Ltd. Vs Collector of Central Excise [1988 (11) TMI 107 - SUPREME COURT OF INDIA ] Where inputs which are specified goods, are used within the factory of production for further manufacture of finished goods which are also specified goods, the clearance of such inputs for such use shall not be taken into account for the purposes of calculating the aggregate value of clearances under this notification. There appears to be a rationale behind this Explanation; firstly, when the value of the finished goods, which are exempted under different notifications, is to be excluded, having regard to the wording of Explanation II, on the same analogy, the value of inputs which are being used for manufacture of finished goods are also excluded as both are specified goods, subject, of course, to the limit of the notification - Secondly, the notification provides relief to small scale industries; when the inputs which enjoys the exemption under the notification have already been dealt with, there is no reason why the value of the same inputs again be added for the purposes of aggregate value – Thus the assessee would be entitled to the benefit of Explanation III while computing the aggregate value for the purposes of availing exemption under the notification – Decided against Revenue.
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