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2014 (12) TMI 159 - AT - Central ExciseSSI Exemption - Clubbing of the clearances of the excisable goods manufactured - same factory premises - appellants submits that these three appellants are different and distinct legal entities and they have maintained separate records - Held that:- Notification No. 8/2003-C.E. grants duty exemption to small scale manufacturers, subject to conditions. The condition stipulated for availing the exemption is that clearances effected by a manufacturer from one or more factories or clearances effected from a factory by one or more manufacturers should be clubbed together for determining the eligibility as well as quantum of exemption. It is not in dispute in the present case that all the three appellants operated from the same factory premises. If that be so, the clearances effected during a financial year by all the three manufacturers have to be clubbed together for determination of eligibility as well as quantum of exemption. Conditions specified in clauses (v), (vi) and (vii) leaves no room for any doubt as to how to compute the exemption. It is a settled position in law that an exemption notification has to be construed strictly and if the conditions of exemption are not satisfied, the benefit cannot be extended. In this factual and legal scenario, we do not find any merits in the contention of the appellants that since they are distinct and different legal entities, their clearances should not be clubbed while determining their eligibility to the exemption. Therefore, prima facie, we are of the view that the appellant has not made out a case for complete waiver of pre-deposit of the dues adjudged against them. In the absence of a prima facie case and reasonable financial position of the appellants and considering the need to protect Revenue’s interests, we direct the appellants to make a pre-deposit of 50% of the duty demands confirmed against each of them within a period of eight weeks and report compliance by 21-7-2014. On such compliance, pre-deposit of balance of dues adjudged against the appellants, that is, balance of duty, interest and penalties imposed on the three appellant firms and on Shri Ranjan Kumar Das and Smt. Mousumi Das shall stand waived and recovery thereof stayed during the pendency of the appeals - Partial stay granted.
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