TaxTMI 
TaxTMI 
2010 (4) TMI 934
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....on notification and Cenvat credit facility, has confirmed the demand to the extent of the goods cleared while seeking the benefit of SSI exemption. The authorities below have also claimed interest on such amount and has also levied penalty in case of the matters covered by the Appeals Nos. E/895, 897 and 981 of 2008. 4. In all these appeals, the challenge to the impugned order is on the ground that the branded specified goods stand excluded from entitlement of benefit under SSI exemption notification and they are cleared on payment of duty and that, therefore, they cannot be denied the Cenvat credit facility and for availing such facility in relation to the specified goods for which the benefit is assured under the SSI exemption notification cannot be denied. In that regard, it is the contention on behalf of the appellants that the decision of the Apex Court in Commissioner of Central Excise, Ahmedabad v. Ramesh Food Products reported in 2004 (174) E.L.T. 310 (S.C.), which has been heavily relied upon by the authorities below to deny the benefit of the said notification, is clearly distinguishable being in relation to totally different facts and on a totally different issue. 5. L....
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....tter. 6. Ld. DR, on the other hand, submitted that the Notification No. 8/2003-C.E., dated 1-3-2003 and Condition No. 2(iii) clearly provides that the manufacturer shall not avail credit of duty on inputs under Rule 3 or Rule 11 of the Cenvat Credit Rules, 2002 paid on the inputs used in the manufacture of the specified goods cleared for home consumption, the aggregate value of first clearance of which, as calculated in the manner specified in the Table incorporated in the said notification, does not exceed one hundred lakh rupees, which clearly discloses that the manufacturer would not be entitled to avail credit of duty paid on inputs in the manufacture of such specified goods and, therefore, it is obvious that the manufacturer seeking to avail such Cenvat credit facility would not be entitled for the exemption benefit under the said notification. Drawing our attention to Clause 3 of the Notification No. 175/86-C.E., dated 1-3-86, he submitted that the similar provision is found incorporated in the form of proviso to the said Clause 3 of the said notification and the decision of the Apex Court in Ramesh Food Products is essentially in relation to the said proviso and, therefore,....
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....ding one hundred lakh rupees made on or after first day of April in any financial year", the clearance bearing the brand name or trade name of another person, which are ineligible for the grant of the said exemption in terms of Clause 4 of the said notification shall not be taken into account. Obviously, therefore, the specified goods bearing brand name or the trade name of another person, manufactured by the assessees and cleared on payment of entire duty would not be entitled to claim the benefit under the said notification. The specified goods manufactured simultaneously in the brand name of the assessee himself are not excluded from availing the benefit of exemption under the said notification even though in case of the former goods, the assessee seeks to avail the Cenvat credit facility in respect of the duty paid on the inputs utilised in the manufacture of the branded specified goods on which the full duty is paid while clearing the same. 9. Indeed, the conclusion that the notification in question in relation to the branded specified goods and simultaneous manufacture of non-branded specified goods even in a situation where Cenvat credit is sought to be availed in respect o....
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.... in the prescribed manner. Ultimately, the manufacturers have the choice of choosing one of the two concessions i.e. either the Modvat Scheme or Notification No. 175/86-C.E. Further, there is no one-to-one correlation between the inputs and final products under the Modvat Scheme. It would, therefore, not possible to allow the manufacturer to simultaneously avail Modvat for some products and avail full exemption for others under Small Scale Exemption Scheme. It is pertinent to note that the matter in Ramesh Food Products was relating to the period prior to 1991-92. At the relevant time, there was no provision under the Modvat Scheme, whereby the manufacturer could simultaneously claim the Modvat benefit in relation to non-exempted goods and maintain separate accounts in relation to the inputs procured for utilisation in exempted and non-exempted goods similar to the one which is found incorporated in Rule 12(2 & 3) of the Cenvat Credit Rules, 2004. In other words, the manufacturer had to opt either to avail the benefit of Modvat Scheme and forego the other benefits or in case, the manufacturer decides to avail the other benefits than to forego the benefit of Modvat Scheme. Besides, ....