Whether benefit of Notification No. 75/87-C.E., dated 1-3-1987 as amended and Notification No. 175/86-C.E., dated 1-3-1986, as amended could be availed of simultaneously - Regarding - Central Excise - 1/90-CX.4

Whether benefit of Notification No. 75/87-C.E., dated 1-3-1987 as amended and Notification No. 175/86-C.E., dated 1-3-1986, as amended could be availed of simultaneously - Regarding Circular No. 1/90-CX.4 Dated 1-2-1990 [From F. No. 145/2/90-CX.4] Government of India Central Board of Excise and Customs New Delhi Subject : Whether benefit of Notification No. 75/87-C.E., dated 1-3-1987 as amended and Notification No. 175/86-C.E., dated 1-3-1986 , as amended could be availed of simultaneously - Regarding. Doubts have been expressed as to whether the benefit of Notification No. 75/87-C.E., dated 1-3-1987, and Notification No. 175/86-C.E., dated 1-3-1986, as amended could be availed of simultaneously or otherwise. The matter has been taken up with the Board by All India Refrigeration (SSI) Machinery Manufacturers' Association. 2. The matter has been examined. Notification No. 75/87-C.E., dated 1-3-1987, as amended, prescribes concessional slabs of excise duty for the refrigeration and air-conditioning appliances falling within the Chapter 84, 85 or 90. The clearances upto the first Rs. 5 lakhs are fully exempt from excise duty, and in the case of clearances of the said goods of aggregate value not exceeding Rs. 15 lakhs immediately following the first clearance of Rs. 5 lakhs, exempt from so much of the duty leviable thereon which is specified in the Schedule to the Central Excise and Tariff Act, 1985 [read with any relevant notification issued under sub-rule (1) of Rule 8 of the Central Excise Rules, 1944 or sub-section (1) of Section 5(A) of the Central Excises and Salt Act, 1944] as in excess of 60% of such duty, subject to all other conditions prescribed in the said notification. The exemption contained in this notification shall not apply if the aggregate value of clearances of all excisable goods for home consumption - (a) by a manufacturer, from one or more factories; or (b) from any factory, by one or more manufacturers' had exceeded Rs. 40 lakhs in the preceding financial year. In terms of the said notification, for the purposes of in terms of the computing the aggregate of value of clearances, the clearances of any excisable goods which are exempted from the whole of the duty of excise leviable thereon by a notification (not being a notification where exemption from the whole of duty of excise leviable thereon is granted based upon the value or quantity of clearances made in a financial year) issued under sub-rule (1) of Rule 8 of the Central Excise Rules, 1944 or sub-section (1) of Section 5(A) of the Central Excises and Salt Act, 1944 is not taken into account 4. It would, therefore, appear that Notification No. 75/87-C.E. does not debar the beneficiary to avail of the exemption under Notification No. 175/86-C.E., dated 1-3-1986, as amended, i.e. a manufacturer can avail of the benefit of the exemption as stipulated in both these two notifications simultaneously subject to the observance of other conditions prescribed therein. However, for the purposes of computing aggregate clearances under Notification No. 75/87-C.E. or Notification No. 175/86-C.E. the clearance of all excisable goods under these two notification shall be clubbed. 5. All pending disputes may be disposed of accordingly. 6. Field formations may be suitably informed.