TaxTMI 
TaxTMI 
1995 (4) TMI 144
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....Tariff Item 36 of CET in terms of Notification No. 88/77, dated 9-5-1977 as amended. 3. The respondents are engaged in the manufacture of footwear falling under T.I. 36 of CET. Show cause notice was issued to the respondents based upon the report of the Central Excise Officers who searched the factory premises on 23-10-1981 on the ground that they were not entitled to exemption since visiting officer found 63 workers engaged in the manufacture of footwear and also found that electric motor of 2 H.P. was installed in addition to pasting machine of 1/2 H.P. Since total power used in the manufacture of footwear was found to be 2.5 H.P. including one pasting machine installed with 1/2 H.P. motor in the precincts, which was under the contr....
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....remises of the respondents, the respondents' factory was not entitled to exemption in terms of Notification 88/77-CE. He contended that pasting machine of 1/2 H.P. of the contractor was also within the precincts of the respondents' factory even as per finding of the Collector (Appeals) and since the same was being used in the manufacture of footwear by the respondents the exemption cannot be extended to the party in terms of Notification. 6. Shri Vivek Kohli, learned Advocate appearing for the respondents submitted that the respondents are entitled to avail exemption in terms of Notification 88/77 subject to fulfilment one of the conditions specified therein and it is clear from the record that they have fulfilled the condition that p....
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....ein not more than 49 workers are working, or were working on any day of the preceding 12 months; or (ii) the total equivalent of power used in the manufacture of such footwear by or on behalf of a manufacturer in one or more factories does not exceed 2 H.P. Explanation. - For the purpose of this notification, where footwear, manufactured by a manufacturer, is affixed with the brand name or trade name, registered or not, of another manufacturer or trader, it shall not merely by reason of that fact, be deemed to have been manufactured by or on behalf of such other manufacturer or trader." 8. On a careful consideration of the records we find that apart from the fact machinery installed in the unit was of 1.75 H.P. as it was certi....