2007 (12) TMI 324

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....Board engaged in the manufacture of PCC poles falling under Tariff Item 6810 99 90 of the First Schedule to the Central Excise Tariff Act, 1985. On scrutiny of the ER-1 returns for the months April, 2005 to March, 2006, it was observed that the total aggregate value of the clearance for the financial year 2005-06 was Rs. 119.25 lakhs, whereas no duty had been paid on crossing the exemption limit of Rs. 100 lakhs. Therefore, a show cause notice was issued to the appellants for demand of differential duty, for payment of interest thereon and for imposition of penalties. After considering the submissions made by the appellants, the lower authority held that the appellants were liable to pay duty amount of Rs. 3,10,086/- and education cess of R....

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....red for the hearing and filed a written submission. 5. I have gone through the grounds of appeal, submissions made at the time of hearing and all other evidence on record. It is not disputed by the appellants that in the absence of notification No. 74/93-C.E., dated 28-2-93, they become liable for payment of duty on crossing the exemption limit of Rs. 100 lakhs and as demanded under the impugned order. Their appeal is solely confined to the eligibility of exemption under notification No. 74/93-C.E., dated 28-2-93. 6. The exemption under notification No. 74/93-C.E., dated 28-2-93 is available provided the goods are manufactured by a factory belonging to a State Government and such goods are intended for use, by any Department....

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.... 8. The CSEB was constituted on reorganization of the State of Madhya Pradesh in the year 2000. It owes its existence to the creation under sub-section (1) of Section 5 of the Electricity (Supply) Act, 1948, read with Section 58 of the Madhya Pradesh Re-organisation Act, 2000. Therefore, CSEB is a creation of Acts of Parliament. On the other hand, the Government or a Department of the Government, derives its source to the Constitution of India. The Supreme Court in the case of UP State Electricity Board (supra) have in no uncertain terms held that the Electricity Board is not 'State' within the meaning of Article 12 of the Constitution of India. Thus, it follows that CSEB is distinct from a Department of the State Government. Whether ....