1990 (5) TMI 133

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.... to Valuation and would confine themselves only with reference to the limited question of their entitlement to the benefit of Central Excise Notification No. 175/86, dated 1-3-1986 in respect of the clearances of inputs in question. It was urged that the authorities below have taken the view that the exemption from duty is available as long as the duty-free clearances/value of the first clearances from the factory does not exceed Rs. 30 lakhs in terms of Notification 175/86 cited supra. The Department's view is that if the same limit is crossed, the duty-free clearances of the goods are not eligible for a factory or a manufacturer and the assessee should so arrange that after taking Rs. 15 lakhs of duty-free clearances of one item and stop ....

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.... of this Tribunal in EL.P.EM. Industries case dealing with an identical situation has held as under: - "5. On a careful consideration of the submissions made by the learned Consultant and the learned SDR it is seen that clause (a) of Notification No. 175/86 grants exemption of the specified goods in the case of first clearances upto an aggregate value not exceeding Rs. 30 lakhs and it also has a proviso which says that the aggregate value of clearances of the specified goods under sub-clause (ii) thereof, which is relevant to the present case, in respect of any one heading number of the tariff schedule shall not exceed Rs. 15 lakhs. The Notification No. 175/86 is an integrated scheme providing for duty concessions with reference to the v....

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....Rs. 30 lakhs, the other goods would continue to enjoy the exemption till the aggregate ceiling of Rs. 30 lakhs exemption for first clearances is reached. It is also observed that in a departmental clarification published and reproduced in 1986 E.L.T. (26) T-4 it has been stated, while clarifying the extent of exemption under Notification No. 175/86, that if a manufacturer manufactured excisable goods falling under more than one tariff heading, he will be allowed to avail of full exemption upto Rs. 30 lakhs, subject to the condition that the value of clearances under full exemption shall not '' exceed Rs. 15 lakhs in respect of any one heading. It is further seen that the Coimbatore Collectorate of Central Excise had issued a clarification i....