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2015 (9) TMI 690 - HC - Central ExciseSSI Exemption - availing SSI benefit for one unit and paying full rate of duty from another unit simultaneously - Denial of exemption benefit under Notification No. 1/93-CE dated 28.02.1993 - Held that:- A bare reading of the amendment, which was inserted in the early Notification 1/93-CE, appears to suggest that this was done as manufacturers were coming in and out of this exemption. They first used to opt for exemption in a financial year and thereafter for other clearances they opted out of the exemption. The extended meaning of the amendment which says “subject to the condition that such manufacturer shall pay duty at the rate applicable but aforesaid exemption on all subsequent clearances of specified goods made after availing such option, in a financial year in which such date of option falls,” shows the real intention behind the amendment. - if an aggregate value of the total clearance of a manufacturer exceeds rupees two crore in the preceding financial year, it cannot claim exemption under the notification. There are other similar provisions with the same goal in mind. The most important and in fact the decisive words in para 2 of the Notification No.1/93-CE is that only such clearances can get exemption where the “aggregate value of the clearances of the specific goods for home consumption” is of a certain value. The provision in the main Notification No.1/93-CE as well as the amended Notification No. 59/94 have been placed in order to check this abuse. It is for this reason that we find that once the respondent had exercised to keep out of the exemption for its Sitapur unit, it cannot claim benefit of the notification for its Dehradun unit consequently the demand of the excise authorities is justified. We have no difficulty in accepting the legal proposition that fiscal laws have to be strictly interpreted. That is the settled manner of interpretation of fiscal statutes. - manufacturer could not have availed the benefit of exemption under Para (1) of the Notification No. 01/93-CE dated 28.02.1993, since it had opted to full rate of duty in a financial year in relation to its other unit. - Decided in favour of Revenue.
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