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2018 (7) TMI 307 - AT - Central ExciseSSI exemption - crossing of threshold limit - The department has proceeded to deny the SSI exemption alleging that in the very same factory goods were cleared by two manufacturers and therefore as per clause (vi) of para 2 of the Notification No. 8/2003-CE, the exemption benefit is not available to the appellant - Held that:- It is not disputed that the appellant M/s. Sun Pack, Proprietor Shri S. Chandrasekar has started the manufacturing operations in the factory only with effect from 10.11.2006. It is also seen that they have cleared goods worth ₹ 66,60,401.92 during the period from 10.11.2006 to 31.3.2007. Thus the aggregate value of clearances for the appellant has not exceeded the SSI exemption limit. The factory having been taken on lease by the appellant, he has to be considered as an independent manufacturer. Further, the earlier manufacturer Shri D. Kalaiarasan has cleared the goods on payment of excise duty and has not availed any exemption benefit. Only because the earlier manufacturer was not availing exemption benefit, the appellant cannot be compelled to pay excise duty even though the clearances are below the SSI limit. There is no case that both the manufacturers were clearing goods from the same factory during the relevant period. Thus, clause (vi) of para 2 of the Notification is not attracted in the present case. Demand of duty do not sustain - appeal allowed - decided in favor of appellant.
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