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TMI Blog2019 (2) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... Brief facts are that the appellants Unit - I are manufacturers of cranes and parts thereof. They were availing the SSI exemption under Notification No.1/93-CE and clearing goods without payment of duty. During October 1997, the officers visited the premises. On verification of records, it appeared that they had exceeded the SSI exemption limit and were not eligible for SSI exemption for the years 1994 - 95 to 1997 - 98. Show cause notice was issued proposing to demand duty and also for imposing penalties. After due process of law, the original authority confirmed duty demand of Rs. 1,04,641/- for Unit - I and Rs. 2,68,455/- for Unit - II of the appellants and also imposed penalties. In appeal, Commissioner (Appeals) upheld the demand where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the year 1996 - 97 would be only Rs. 2,99,72,184/-. Therefore, the turnover for the previous year would be less than Rs. 300 lakhs. Further, in para 12.6 of the adjudication order, the adjudicating authority records that the appellant (Unit - II) was availing SSI exemption and for this reason, it is concluded by the adjudicating authority that the appellants are therefore not eligible to claim the benefit of Notification No.38/1997 for the reason that they have availed MODVAT credit during the period 1997 - 98. This is factually incorrect. The appellant was paying normal rate of duty and also availed MODVAT credit in the year 1997 - 98. Further, Notification 38/97 was introduced on 27.6.1997. The appellant thereupon availed the benefit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se notice, the demand of duty in respect of Unit - II is Rs. 2,68,455/- and the same has been confirmed by the authorities below. For the period 1997 - 98, the consultant has rightly pointed out that they have not been availing SSI exemption benefit under Notification 1/93-CE or 16/97-CE. The documents produced (RT 12 returns) for payment of duty from April 1997 to February 1998 shows that the appellants were paying the normal rate of duty at 13% till July 1997. They were also availing MODVAT credit since they were paying the normal rate of duty. Thereafter, when Notification 38/97 was introduced in June 1997, they claimed SSI exemption of the said notification. As per the said notification, the assessee has to pay reduced / concessional ra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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