2002 (6) TMI 458

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....ental Representative, submitted that the respondents manufacture Axil Drive Assembly and discharge Central excise duty without availing the SSI benefit under Notification No. 8/2000-C.E., dated 1-3-2000; that as they were paying duty on monthly basis instead of on fortnight basis, they were directed by the Assistant Commissioner to pay duty on consignment basis as they had failed to make the full payment of installments for the third time in succession; that, however, on appeal, the Commissioner (Appeals), under the impugned order, ordered that they should be treated as a SSI unit with the provisions of making duty payment on monthly basis as is the case with the SSI units. The learned Departmental Representative, further, submitted that as....

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....branded goods and declared the value of clearances of the excisable goods in the preceding financial year; that such declarations are required to be made by a unit which is availing of SSI exemption; that they have there options for availing the exemption notifications as under : (i)      Full exemption up to Rs. 50 lakhs; (ii)     To Pay 60% for the first 50 lakhs and avail CENVAT; (iii)    To Pay 100% Normal duty and avail CENVAT; 3.2 The learned Consultant contended that they have opted to pay 100% normal duty under the notification and as such it cannot be said that they were not availing exemption under a notification based on value of clearances in a financia....

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....natural justice. 5. We have considered the submissions of both the sides. Rule 173G(1)(aa) of the Central Excise Rules, 1944 provides that "every manufacturer availing of the exemption under a notification based on the value of clearances in a financial year shall discharge his duty liability in respect of clearances made during a calendar month by the fifteenth day of the succeeding month." The issue to be decided is whether the respondents were availing the benefit of such a notification at the relevant time. It is not disputed by the respondents that they were paying duty @ 16% which was the Tariff Rate. They have placed reliance on Para 2 of the Notification No. 8/2000 which reads as under : "2. The exemption contained in thi....