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TMI Blog2018 (7) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... yard situated within the premises of TNEB. During the period September 1999 to March 2000, the respondent who was one such contractor who manufactured RCC poles in the TNEB yard, was issued show cause notice alleging that they failed to obtain Central Excise registration and had crossed SSI exemption limit of Rs. 50 lakhs on 15.10.1999. After due process of law, the original authority confirmed the demand and imposed penalty. In appeal, Commissioner (Appeals) set aside the same. Hence department is now before the Tribunal. 2. The ld. AR Shri S. Govindarajan reiterated the ground of appeal. He submitted that the observation of the Commissioner (Appeals) that there is no allegation in the show cause notice or findings in the Order-in-Origina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use notice is that respondents did not obtain Central Excise registration for the manufacture of PSC/RCC poles at the TNEB Yard, Samayanallur and failed to pay excise duty since the aggregate value of clearances of PSC/RCC poles effected by different contractors at the yard had crossed the SSI exemption limit of Rs. 50 lakhs on 14.10.1999. In show cause notice, it is stated that apart from respondents, similar contractors were carrying out the activity of manufacture in the yard. During 1999 - 2000, the value of clearances effected by previous manufacturers at the yard upto 14.10.999 was Rs. 62,24,620/-. The department, therefore, was of the view that as the value of clearances from the yard exceeded Rs. 50 lakhs for the financial year 1999 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it cannot be said that all these manufacturers are doing their activity within a factory so as to attract condition No. (vii) of para 2 of Notification No. 8/1999. The basic idea behind this clause is to curtail the creation of dummy units or splitting the clearances in the name of plural number of manufacturers for availing the benefit of notification. Each contractor being independent manufacturer will be eligible for the SSI benefit. The show cause notice has been issued alleging that the value of clearances effected from TNEB Yard, Samayanallur exceeded the exemption limit. When each contractor has to be considered as an independent manufacturer, the demand raised against one contractor stating that clearances effected from yard includ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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