The Tax Publishers2020 TaxPub(EX) 1002

CENTRAL EXCISE ACT, 1944

Notification No. 81/2002-CE

Where assessee manufactured and cleared the printed material for home consumption which do not bear any branded name and certain categories of clearances have been excluded for determining aggregate value of clearances under paragraph 2(vii), further, in terms of paragraph 3A(b) of Notification, clearances bearing the brand name or trade name of another person are not includible in the aggregate value of clearances, therefore, there was no violation of the procedure by assessee and benefit of SSI exemption cannot be denied to assessee.

SSI exemption - Supplies made to merchant exporters against Form 'H' and Form 'ST-49' - Eligibility of -

Assessee was engaged in manufacture of PVC bags and other articles of printing like paper inserts, tags, labels, stickers and stiffeners and have been classified under sub-heading 4901.90 of the Tariff Item and are chargeable to NIL rate of duty. However, the PVC bags manufactured by assessee were classifiable under Tariff Item 3923 29 10 and attract central excise duty. Assessee also supplied these goods to various merchant exporters against Form 'H' and Form 'ST-49' for use in the goods manufactured and exported by such merchant exporters. Such supplies made to the merchant exporters against Form 'H' and Form 'ST-49' were not included in the aggregate value of clearances, for availing benefit of Small Scale Industry, SSI exemption under the Notifications. Department, however, believed that assessee was not entitled to avail SSI exemption under Notification No. 81/2002-CE, dated 1-3-2002. Held: Assessee manufactured and clears the printed material for home consumption which do not bear any branded name. He also manufactured printed material which bears the brand name of the buyers. Certain categories of clearances have been excluded for determining the aggregate value of clearances under paragraph 2(vii). Thus, in terms of paragraph 3A(b) of Notification, clearances bearing the brand name or trade name of another person are not includible in the aggregate value of clearances for paragraph 2(vii). There was no violation of the procedure by assessee and in any case, procedural infraction, if any, cannot to be a ground to deny of substantive benefit of SSI exemption to assessee.

REFERRED : Commissioner of Central Excise, Chennai v. M/s. Nebulae Health Care Ltd. 2015(325) ELT 431 (S.C) : .2015 TaxPub(EX) 2306 (SC) Commissioner of Central Excise v. Amar Packaging Industries 2016 (344) ELT 187 (Guj) Viba Fluid Control v. Commissioner of Central Excise 2018 (364) ELT 230 (Tri.-Mumbai) Commissioner of Central Excise, Delhi-I v. Sigma Pneumatics (P) Ltd. 2017 (353) ELT 245 (Tri.-Delhi) British Health Products India Ltd. v. Commissioner of C. Ex. 2016 (335) ELT 489 (Tri.-Delhi) : 2016 TaxPub(EX) 822 (Del) Jai Jawala Processors v. Commissioner of Central Excise 2018 (360) ELT 94 (Tri.-Del) : 2018 TaxPub(EX) 233 (Del) Hare Krishna Boxes (P) Ltd. v. Commissioner of C. Ex. 2011 (267) ELT 525 (Tri.-Mumbai) : 2011 TaxPub(EX) 703 (Mum).

FAVOUR : In assessee's favour

A.Y. :



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