TMI Blog1993 (4) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... 1977 to 21-6-1981. In the show cause notice it was further alleged that the respondents were issued licence No. 7/68/75 for the manufacture of T.I. 68 goods which was renewed upto 31-12-1979 but they discontinued payment of duty which was payable on the goods manufactured by them in terms of Notification No. 176/77 dated 18-6-1977 superseded by Notification No. 89/79 dated 1-3-1979 and Notification No. 105/80 dated 19-6-1980 by suppressing the fact that the factory was one of the units owned by SIDECO. On the grounds that the total clearances of excisable goods in the preceding year from all the different units of SIDECO had exceeded the limit of Rs. 30 lakhs it was alleged that exemption under these notifications was not admissible to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has filed this appeal and the respondents have filed cross-objection. 4. On behalf of the appellant, learned SDR Smt. J.M.S. Sundaram stated that the Collector had erred in holding that SIDECOs role was that of a holding company and each individual unit of the Public Sector Undertaking SIDECO was to be treated as different manufacturer in respect of exemption applicable to T.I. 68 goods. She contended that SIDECO being an independent undertaking, the value of clearances of all excisable goods cleared by all units owned by or controlled by SIDECO were required to be clubbed together for the purposes of charging Central Excise duty. She argued that the respondent was not entitled for the benefit of exemption in respect of T.I. 68 goods und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration in this case :- (i) Whether each unit of the State Public Sector Corporation like SIDECO could be treated as an independent manufacturer of goods falling under T.I. 68, for the purpose of Notification Nos. 176/77, 89/79 and 105/80. (ii) Whether the demand issued to the respondents as per notice dated 8-10-1984 for the period 6-12-1977 to 21-6-1981 was time barred. 7. Taking up the first point we find that subject to the satisfaction of the condition laid down in the exemption in respect of T.I. 68 goods under Notification No. 176/77 was applicable only to the first clearance for home consumption by or on behalf of the manufacturer from one or more factories upto a value not exceeding rupees thirty lakhs during financial year su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions made by the appellants during the proceedings before the Collector : M/s. Government Instrument Workshop, Pappanamcodo, in their letter No. GIW/S-O/371/80 dated 6-11-1984 have stated that from 1977 onwards the unit was functioning as a unit of SIDCO"; that their application for exemption, based on the Notification No. 176/77 dated 18-6-1977 which was superseded by 89/79 dated 1-3-1979 and Notification No. 105/80 dated 19-6-1980 for the goods manufactured in the Unit was submitted to the Central Excise authorities and permission was granted with effect from 18-6-1977 to 31-3-1978; that they had not suppressed any fact, that their organisation was a unit of SIDCO, further they stated that the declaration issued by the Manager, Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h was subsequently withdrawn. They added that they have been issued with another show cause notice on the same issue." 9. On a plain reading of the extracts from the impugned order reproduced above, it is evident that the appellants had at all stages kept the department informed that they were a unit of the Kerala State Small Industries Development and Employment Corporation Ltd. It is also noteworthy that a show cause notice dated 1-12-1983 issued to the appellants by the Superintendent of Central Excise, Trivandrum on the same grounds was later withdrawn. In fact, even the findings of the Collector in the proceedings, which have been challenged before us are in favour of the appellants. Under these circumstances we hold that there could ..... X X X X Extracts X X X X X X X X Extracts X X X X
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