TMI Blog2002 (10) TMI 512X X X X Extracts X X X X X X X X Extracts X X X X ..... xcisable goods falling under Chapters 32 and 84 of the Schedule to the Central Excise Tariff Act; that in the terms of Notification No. 175/86-C.E., dated 1-3-86 they were entitled to duty free clearance upto Rs. 30 lakhs subject to the condition that the duty free clearance in respect of goods of any one Chapter would not exceed Rs. 20 lakhs; that since they were manufacturing goods falling under two chapters, they decided to avail exemption from payment of duty in respect of clearances up to Rs. 10 lakhs under Chapter 84 and the remaining Rs. 20 lakhs under Chapter 32; that accordingly as soon as they crossed the exemption limit of clearance of Rs. 10 lakhs under Chapter 84 they started paying duty on the next clearances irrespective of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... headings manufactured by the manufacturers exceeds Rs. 15 lakhs and the value of the first clearance of all other excisable specified goods not having exceeded Rs. 30 lakhs the other goods would continue to enjoy the exemption till the aggregate ceiling of Rs. 30 lakhs exemption for first clearance is reached; that the appeal filed by the Revenue against the said decision has been dismissed by the Supreme Court as reported in 1997 (92) E.L.T. A76. Reliance has also been placed on the decision in the case of CCE, Indore v. Neo Era Agro Engineering, 2000 (124) E.L.T. 665 (Tribunal) which has also been affirmed by the Supreme Court as the Civil appeal filed by the Revenue has been dismissed as reported in 2001 (127) E.L.T. A47. The learned Con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on or after 1st April in any financial year and the qualification to any clearance by the word First would clearly indicate that the first clearances means clearances in a chronological order up to the limit of Rs. 30 lakhs. If out of the first clearance of Rs. 30 lakhs, any goods are cleared on payment of duty, the same could not be excluded from reckoning. The learned DR, further, submitted that the appeal filed against the decision in Khalsa Pulp Paper was simply dismissed without giving any reason; that similarly the appeal against the decision of New Era Agro case is dismissed, that in absence of any reasoning, decision do not have precedent value; that accordingly the decision of the Larger Bench would be applicable. Finally the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p to Rs. 30 lakhs ........ It also follows from the reading of the notification that even if specified goods falling under one of the headings manufactured by the manufacturer exceeds Rs. 15 lakhs and the value of the first clearance of all other excisable specified goods not having exceeded Rs. 30 lakhs, the other goods would continue to enjoy the exemption till the aggregate ceiling of Rs. 30 lakhs exemption for first clearances is reached . In the present matter the duty has been demanded only after the Appellants have exceeded the exemption limit of Rs. 30 lakhs on 19-8-92. Accordingly even in terms of the decision in the case of EIP. Em Industries which has been followed in Khalsa Pulp Paper case as well as Solar Pakaging P. Ltd. v. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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