2001 (2) TMI 721

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....ifiable under Heading No. 3923.90. The said bags are exempted from payment of duty under Notification No. 4/97, dated, 1-3-1997. As the lay flat tubes is one of the specified items under small scale exemption Notification No. 16/97-C.E., dated 1-4-1997, in terms of the clause (c) of paragraph 3 of the said notification, for the purposes of determining the aggregate value of clearances, clearances of specified goods used as input in the manufacture of any other specified goods within the factory of production of the specified goods is not to be taken into account. Such clearances of specified goods used as inputs shall be deemed to be exempt from the whole of duty of excise leviable thereon, in terms of the said clause (c) of para 3 of the n....

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....t clauses of the notification involved in the present appeal. Notification No. 69/97-CE dated 3-12-1997 S. No. Notification No. and date Amendment (1) (2) (3) 1. 16/97-Central Excise, dated the 1st April, 1997 In the said notification in paragraph (5), in the explanation, after clause (e), the following shall be inserted, namely, -     "(f) where the specified goods are chargeable to nil rate of duty or are already exempt from the whole of the duty of excise leviable thereon under any other notification, the clearances of specified goods used as inputs, shall not be deemed to be exempt under clause (c) of paragraph 3". 5. Lay flat tube is admittedly one of the specified items under Noti....

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....argeable to nil rate of duty under any other notification, the clearances of such specified goods used as inputs shall not be deemed to be exempt under clause (c) of paragraph 3. The effect of amendment of the above notification as referred above would be that for the purposes of paragraph 3(c), the clearances of specified goods used as inputs in the manufacture of specified goods as final product, which are exempted from payment of duty shall be taken into account for the purposes of determining the aggregate value of clearances. This becomes clear from the fact that the main paragraph 3, of which (c) is only one of the clauses deals with determination of aggregate value of clearances and not with the availability of exemption under the no....