1998 (11) TMI 238

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....h as cups, and lids out of rigid plain plastic sheets of PVC, etc., falling under Chapter 39 of the Central Excise Tariff, while the cross objections have been filed by the respondents against his findings that they cannot opt to pay duty on finished goods which are fully exempt and are liable to pay duty on the intermediate products viz. plastic sheets as they are not entitled to the benefit of the Notification 217/86 dated 1-3-1986 since their final products were exempted from duty in terms of Notification 53/88 and holding that the respondents were not entitled to Modvat credit on plastic sheets used in the manufacture of the final products. 2.  We have heard Shri H.K. Jain, learned SDR and Shri Udai Joshi, learned Counsel. 3.&ems....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in matters like excise duty, allocation etc. in Para 3 clearly indicates that small scale units include a small scale ancillary industry with investment in plant and machinery not exceeding Rs. 15 lakhs (the limit at the time). The letter also clarifies that the intention of the Government in providing the necessary relaxation from Rs. 10 lakhs to Rs. 15 lakhs in the capital investment in the scale of small ancillary units was to make them competent units to cater to stringent requirements of quality expected from them by the parent units through installation of costly and sophisticated machinery and makes it clear that "since the ancillary units continue to maintain their small scale status even though they cross capital investment Rs. 10 ....