TMI Blog1999 (10) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... y him. 2. The facts of the case are that the respondent has been manufacturing Polyester Wadding falling under Tariff sub-heading 56.01 and Polyester Pillow/Cushion/Bolster falling under Tariff Heading 94.04. The respondents were also an SSI Unit entitled to the benefit of Notification No. 175/86, dated 1-3-1986 as amended. In the said notification there was a condition that in case an assessee was manufacturing more than one item classifiable under different headings, duty free clearances will be limited to first clearances upto Rs. 30 lakhs. The Department observed that the respondent had availed exemption upto Rs. 20 lakhs on goods classifiable under Chapter sub-heading 56.01 and thereafter started paying duty on this item. They al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecified goods upto an aggregate value not exceeding Rs. 30 lakhs are fully exempt provided that the aggregate value of clearances in respect of any one chapter had not exceeded Rs. 15 lakhs. He submitted that the normal meaning of this expression will be that within Rs. 30 lakhs limit all the clearances in the chronological order including those on which duty at concessional rate has been paid will be taken; that once Rs. 30 lakhs limit has been crossed taking into account the first clearances of the two specified goods then the rate of duty would be determined in terms of para 1(b) in respect of all specified goods. He submitted that there was nothing in the Notification to suggest that the goods of one chapter can get Rs. 15 lakhs full e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) and (b) together; that this will relate to first clearances of first Rs. 30 lakhs and succeeding clearances upto Rs. 45 lakhs; that the stress on reckoning of clearances on or after 1st April in any financial year and the clarification of clearances by the word first would clearly indicate that the first clearances means clearances in a chronological order upto a limit of Rs. 30 lakhs; that if within the first clearances of Rs. 30 lakhs if any goods are cleared on payment of duty, the same cannot be excluded from reckoning. Ld. DR submitted that this decision of the Larger Bench of this Tribunal took into consideration the decision of the Hon ble M.P. High Court in the case of Bee Kay Rubber Industries Pvt. Ltd. v. U.O.I. reported in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
