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2015 (8) TMI 1050 - SC - Central ExciseDenial of exemption claim - Exemption under Notification dated 23-7-1996 - Imposition of penalty - Held that:- Goods in question sold by the appellant on retail price, namely, the foot wear, was at less than ₹ 75/- per pair. However, we find that the said Notification also imposed a specific condition to the effect that the goods are to be consumed within the factory for their production. In the instant case the goods were sent to the other factories for production. Therefore that condition is clearly not satisfied. However, insofar as penalty imposed upon the appellant is concerned, we are inclined to set aside the same simply on the ground that the appellant has its own factory where the goods in question viz. the inputs are used for manufacture of footwear. However, for a brief period during which there was some labour problems in the appellant’s own factory, the production was outsourced and exemption claimed for that period under bona fide belief. - Decided partly in favour of assessee.
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