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TMI Blog2017 (6) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat credit on the clearances of these goods affixed with the brand name of other persons. Therefore, it was alleged against the appellant that they violated the conditions laid down in para 2(i) and (iii) of the said notification. Therefore, they are not entitled for the benefit of exemption notification for own clearances. In these circumstances, proceedings were initiated against the appellant and impugned order was passed denying the benefit of exemption notification. Consequently, the demand of duty along with interest is confirmed against the appellant. Aggrieved by the same, the appellant is before us. 3. None appeared for the appellant nor any request for adjournment is received. Considering that the issue is already covered by the decision of the Apex Court in the case of CCE, Chennai vs. Nebulae Health Care Limited -2015 (325) ELT 431 (S.C.), the matter is taken up for disposal. 4. Heard the Id. AR. We find that similar issue has come up before the Hon'ble Apex Court in the case of Nebulae Health Care Limited (Supra), wherein the Hon'ble Apex Court in Para 17 and 18 has held that the assessee is entitled for the benefit of exemption no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vat/Modvat credit on the inputs which were used for manufacture of such goods as on those inputs also excise duty was paid. To put it otherwise, these branded goods manufactured by the SSI Units meant for third parties are regulated by the normal provisions of excise law and will have no bearing or relevance insofar as availing the benefit of those exemption notifications in respect of its own products manufactured by the SSI Units is concerned. 18. We, thus, find that the Tribunal in the impugned decisions in both these appeals has decided the issue correctly. Admittedly, in respect of home production, the assessee had not availed the benefit of two options simultaneously as no Cenvat credit is claimed in respect of those goods. While doing so, the Tribunal has taken note of the judgment of this Court in Ramesh Food Products case and rightly analysed the same. We reproduce following discussion in the impugned judgment dated 22-8-2006 [2007 (209) E.L.T. 125 (Tribunal)] of the Tribunal (which is the subject matter of Civil Appeal No. 2789 of 2007) : "7. The provisions in the relevant Notifications to compute aggregate value of clearances mandate that the clearances of g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did not require that the goods bearing brand name of third parties should be excluded. The following explanations, inter alia, governed computation of the above aggregate value for the Notfn. Explanation IV - For the purposes of this notification, where the specified goods manufactured by a manufacturer, are affixed with a brand name or trade name (registered or not) of another manufacturer or traders, such specified goods shall not, merely by reason of that fact, be deemed to have been manufactured by such other manufacturer or trader. 8.2 The above condition though present in the Notifications that replaced the scheme of duty benefit for SSI units contained in Notfn. 175/86, value of such goods are specifically excluded from the computation of aggregate value in these Notfns. Clearances of goods bearing brand name of third parties is thus not governed by the Notfns. issued for the benefit of SSI units. xx xx xx 9.1 All the twin Notifications contain the following identical conditions excluding the goods bearing brand name of third pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted in 2016 (342) ELT 131 (Tri. Chd.) wherein the facts of the case are as under: 2. The facts of the case are that the appellant is engaged in the manufacturing of medicines in their own brand name and also the brand name of other persons. An investigation was conducted on the factory premised of the appellant and on scrutiny of record, it was observed that during the period of 2005-2006, the appellant has availed the exemption under Notification No. 8/2003-CE dated 01.03.2003 on the goods affixed with their own brand name and simultaneously cleared goods affixed with the brand name of other person on payment of duty and by availing cenvat credit on inpout used in manufacturing of the said goods affixed with brand name of other person from the beginning of the financial year. The appellant also cleared goods for export by availing cenvat credit of inputs used in manufacture of export goods. The allegation of the revenue is that as the goods manufactured by the appellant are following under chapter 30 of the Central Excise Tariff Act, 1985 are goods specified under Notification No. 8/2003-CE dated 01.03.2003 and as per para 2 of the said notification. The exemption contained in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecified goods, bearing a brand name or trade name (registered or not) of another person: Provided that nothing contained in this paragraph shall be applicable to the specified goods which were component parts of any machinery or equipment or appliances and cleared from a factory for use a original equipment in the manufacture of the said machinery or equipment or appliances, and- (i) In a case where the clearance of such specified goods are within the first clearance upto an aggregate value not exceeding rupees thirty lakhs in a financial year, the manufacture of the specified goods gives a declaration that the specified goods shall be used as mentioned above. (ii) In any other case, the procedure set out in Chapter X of the said rules is followed. Provided further that nothing contained in this paragraph shall be applicable to the specified goods bearing a brand name or trade name (registered or not) of the Khadi and Village Industries Commissioner or of the State Khadi and Village Industries Board, National small industries corporation or the State small Industries Development Corporation. Notwithstanding the exemption contained in paragraph 1 of this notification, a m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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