1989 (3) TMI 265

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....ound that the appellants had crossed Rs. 30/- lakhs exemption limit for small scale industries in respect of the products cleared by them in terms of Notification No. 175/86 and also imposing on them a penalty of Rs. 100/- under Rule 9(2) of the Central Excise Rules, 1944. 2.  The appellants under their management have two units which are small scale industrial units. They are licensed to manufacture Electric Motor and parts thereof. They are engaged in the manufacture of four commodities falling under various headings of the Central Excise Tariff Act, 1985 - 8503.00, 8485.90, 8481.80 and 7308.90. In the Unit No. II they are manufacturing excisable goods under Heading 8503.00 only. For computing the aggregate value of clearances, th....

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.... the aggregate value of Rs. 30 lakhs for the first clearances. Another condition in the Notification for the exemption is that under one heading number, the exemption granted should not exceed Rs. 15 lakhs According to the learned Consultant, the second condition does not restrict the number of sub-items which can get the benefit of exemption. It only speaks of the value which is limited to Rs. 15 lakhs. The only condition is that each one of the items should be less than Rs. 15 lakhs. According to the learned Consultant, therefore, no duty is payable on the other goods manufactured except that taken together they exceed Rs. 15 lakhs. 4.  Shri K.K. Bhatia, the learned S.D.R. appearing for the Department contended that Notification N....

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....above would show that it provides for duty free clearances up to Rs. 15 lakhs under one heading of the tariff and up to Rs. 30 lakhs for more than one heading, the computation being done on the value of the first clearances in the financial year April to March. Within the overall value of the first clearances up to Rs. 30 lakhs the manufacturer of the specified goods falling under more than one heading can, in terms of the Notification, have any combination of the value of the clearances of the different goods for enjoying the full exemption Up to Rs. 30 lakhs. This is subject to the condition that the value of clearances under any one heading among them does not exceed Rs. 15 lakhs. It also follows from a reading of the Notification that e....