TMI Blog2001 (11) TMI 971X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent. [Order per : K.K. Bhatia, Member (T)]. The appellants manufactured Drilling Tools (TRR Bits) which are used in Drill Machines in coalfields. During the year 1996-97, their overall turnover was Rs. 29,92,905/-. In terms of the provisions of Notification No. 1/93-C.E., dated 28-2-1993 which provided exemption to small scale manufacturers, since the turnover of the party did not exce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing exemption limit of Rs. 30 lac and accordingly, a show cause notice dated 28-5-98 was issued to the appellants in which it was averred that while computing the clearance value for the year 1996-97, they had not added these two values to their turnover and by adding these values the total value of clearance would come to be Rs. 30,76,717/-. Accordingly, clearances exceeding Rs. 30 lacs are liabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the bits supplied to their buyers are free of cost in terms of the conditions of the contracts entered into with these concerns and hence the lower authorities have wrongly included their cost in the turnover of the appellants. It is contended that the lower authorities have failed to appreciate that the total turnover of the appellants during the financial year 1996-97 still remains Rs. 29,5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be supplied by them. For the free supplied goods to the buyers, the appellants have not charged any amount from them. Therefore, the question of adding any notional value in respect of the free supply goods to the turnover limit of the appellants would not arise. The value of the free supplied goods is included in the value of the ones supplied on payment which is included in the turnover of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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