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2018 (2) TMI 919

SSI exemption - calculation of aggregate value - Revenue held a view that since the appellants were engaged in preparing variety of food items using meat, vegetables, pulses etc. and these items being exempted from payment of Central excise duty, while calculating the aggregate value of clearances for SSI exemption under No/N. 8/2003 dated 01/03/2003, the gross value of all products is to be considered - Held that: - What is needed is to see whether a new, commercially identifiable product emerged after processes undertaken on the raw materials which are distinct from the finished product. there is no hesitation to hold that the finished products, in the present case are different types of food preparations and are new marketable products a .....

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2004 to 2005-2006. The Revenue held a view that since the appellants were engaged in preparing variety of food items using meat, vegetables, pulses etc. and these items being exempted from payment of Central excise duty, while calculating the aggregate value of clearances for SSI exemption under Notification 8/2003 dated 01/03/2003, the gross value of all products is to be considered. In other words, the appellants were held to be liable to pay Central excise duty on the dutiable pastry, cakes, biscuits, cookies etc. as their gross turnover (dutiable + exempted goods) exceeded 300 lakhs in the previous base year. The lower authorities confirmed Central excise duty liability of ₹ 6,41,711/- and imposed equal amount of penalty under Sec .....

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to determine the excisability will not be satisfied in the present case. 3. The learned Counsel also contested the demand on limitation as well as for imposition of penalty. Reliance was placed on large number of decided cases. 4. The learned AR supported the findings of the lower authorities. He submitted that the food items prepared in the kitchen of the appellant are actually undergoing process of manufacture. The item which emerges after cooking or preparation is specifically identifiable and is known in the market. The claim of the appellant that cereals, pulses, chicken, fish and vegetable do not undergo any change to become a new edible food product is factually incorrect. It is nobody case that the chicken/meat is similar to the coo .....

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s nobody case that prepared fish or chicken curry ready to serve is can be equated to a raw fish or a chicken curry + some spices. The starting point with various ingredients and the ending point with combination of these ingredients involving different duration of preparation requiring heating, boiling and various other processes will certainly result in the new identifiable and marketable prepared food. The test laid down by the Hon ble Supreme Court in Delhi Cloth and General Mills Co. Ltd. (supra) case is fully satisfied in such situation. The duration of shelf life by itself will not decide the marketability or excisability. This has been a well settled principle by the Apex court. What is needed is to see whether a new, commercially i .....

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