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Kam Garments Pvt. Ltd. Versus Commissioner of Central Excise, Mumbai

2016 (3) TMI 480 - CESTAT MUMBAI

SSI Exemption - Value in the first clearance as computed in the first paragraph of Notification No. 08/2001 - Held that:- Clearance "upto" ₹ 1 crore beginning with 01/05/2001 in the remaining part of the financial year shall be exempted from excise duty. The use of word "upto" in the classification clearly points to the fact that it can be less than ₹ 1 crore. The said clarification also states that clearances of garments already effected upto 30/04/2001 shall be taken into account f .....

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bility of the assessee to correctly determine the duty as per law. It is seen that the appellant failed to do so in this case. The appeal filed by the appellant is dismissed. - Appeal No. E/2046/05 - A/85830/16/EB - Dated:- 17-2-2016 - S. S. Garg, Member (J) And Raju, Member (T) For the Appellant : Ms Kranti Rathi, Adv For the Respondent : Shri V K Shashi, Asst. Comm. (AR) ORDER Per Raju 1. The appellants are manufacturers of readymade garments falling under heading No. 62.01. During the period .....

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r Chapter 62 vide Notification No. 23/2001-CE dated 30/04/2001. The said Notification also amended the Notification No. 08/2001-CE by introducing following proviso in para 3 of the main notification. The para 3 of the proviso to the notification reads as under: "Provided that the clearances for home consumption of goods, whether on payment of duty or otherwise, falling under Chapter 62 of the said First Schedule, between 1st April, 2001 and 30th April, 2001 (both days inclusive) shall be ta .....

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id value in the first clearance as computed in the first paragraph of Notification No. 08/2001. The demand was confirmed by both the lower authorities. Aggrieved by the said order, the appellants are in appeal before the Tribunal. 3. The learned Counsel for the appellant argued that the clause 3(b) clearly indicates that the clearances bearing brand name or trade name of another person, which are ineligible for the grant of this exemption in terms of paragraph 4 of exemption Notification No. 08/ .....

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e argued that para 7 of the said circular clarifies that full exemption is available to clearance of ₹ 1 crore beginning with 01/05/2001. She also argued that they had filed a classification list in which they had declared their intention to avail the benefit of the said notification. She argued that the audit was conducted in the year 2002 and the letter of audit dated 22/10/2002 highlighted this argue. However, revenue issued a show-cause notice only on 12/12/2003. She argued that everyt .....

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n into account, namely:- (a) clearances, which are exempt from the whole of the excise duty leviable thereon (other than an exemption based on quantity or value of clearances) under any other notification or on which no excise duty is payable for any other reason ; (b) clearances bearing the brand name or trade name of another person, which are ineligible for the grant of this exemption in terms of paragraph 4 ; (c) clearances of the specified goods which are used as inputs for further manufactu .....

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account while computing the aggregate value of clearances, at nil rate of duty under Sl. No. 1 of the said Table for the financial year 2001-2002." 7. The provision of the notification is very clear. It is clearly provides that the value of clearance for home consumption of goods whether on payment of duty or otherwise falling under Chapter 62 of the first Schedule between 01/04/2001 and 30/04/2001 shall be taken into account while computing the aggregate value of clearances at Nil rate of .....

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ar 2001-2002 shall be exempted from excise duty. However, clearances of garments already effected upto limit of ₹ 1 crore under Notification Nos. 8/2001-CE dated 9/2001-CE both dated 01/03/2001, respectively. The duty, if any, paid on clearances effected before 01/05/2001 shall not be eligible for any refund". The said clarification is also unambiguous and it says that clearance "upto" ₹ 1 crore beginning with 01/05/2001 in the remaining part of the financial year shal .....

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learned Counsel has relied on the decision of the Hon'ble Supreme Court in the case of CCE Vs. Power & Control - 1992 (62) ELT 662 (Tribunal) and the decision of the Tribunal in the case of Arvind Detergents Pvt. Ltd., Vs. CCE, Aurangabad - 1998 (104) ELT 389 (Tri) to assert that clearances under brand name of others are not to be included for computing the first clearance. It is seen that both these decisions are made in respect of Notification No. 175/86 dated 01/03/86 which did not co .....

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