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TMI Blog2003 (3) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... fer to the facts in the case of M/s. Universal Electrical Industries, the assessee. The assessee manufactures electric toasters, room heaters, electric fans etc. It is a small scale industry claiming benefit of Notification No. 175/1986-C.E., dated 1st March, 1986 [for short, 'the notification']. The assessee has been clearing the goods under the notification, both the inputs as well as the finished goods. On August 6, 1990, a show cause notice was issued to the assessee calling upon it to explain as to why the benefit of the said notification should not be denied to it. After considering the reply filed by the assessee, the jurisdictional Collector took the view that Explanation III to the notification would be attracted only when the inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed counsel, it will be apt to refer to the relevant part of Notification No. 175/1986-C.E., dated 1st March, 1986 : "Exemption to first clearances of specifies goods up to the value of rupees fifteen lakhs and concessional duty on subsequent clearances in the case of manufacturer having clearances not exceeding rupees one and a half crores in the preceding year. — In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 85/85-Central Excises, dated the 17th March, 1985, the Central Government hereby exempts the excisable goods of the description specified in the Annexure below and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise Rules, 1944 (for short, 'the Rules'), has exempted excisable goods of the description specified in the annexure thereto and falling under the Schedule to the Central Excise Tariff Act, 1985 (hereinafter referred to as 'the specified goods'). 7.It is not in dispute that the inputs as well as the finished goods manufactured by the assessee answer the description of the 'specified goods'. The short question that remains to be resolved is, for the purposes of claiming exemption under the notification, how should the aggregate value be arrived at? It is in that context that a reference to Explanation II would be relevant. It says that for the purposes of computing the aggregate value of clearances under the notification, the clearan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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