AI Drafter 
TaxTMI 
TaxTMI 
1984 (2) TMI 340
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.... 68 to small scale manufacturers whose total capital investment on plant and machinery installed in the Industrial Unit does not exceed Rs. 10,00, 000. There is no dispute that the appellants fulfilled this condition. Under the notification aforesaid, first clearance of goods upto an aggregate value not exceeding Rs. 15 lakhs are exempt from whole of duty of excise and next 15 lakhs are chargeable to 4% ad valorem duty under para 2 nothing contained in the notification shall apply to a manufacturer if the total value of the said goods cleared for home consumption by him or on his behalf from one or more a factory in the preceding financial year had exceeded Rs. 30 lakhs. Notification No. 105/80-C.E., dated 19-6-1980 is the successor notification to this notification and has in para 3 similar condition under which the notification is not to apply to a manufacturer if the total value of the goods cleared for home consumption by him or on his behalf from one or more factories the preceding financial year exceeded Rs. 30 lakhs. Appellants are manufacturers of Fare Meters for Taxis and Auto-Rickshaws falling under Tariff Item 68 of the C.E.T. The statutory rate of duty at the material t....
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....otification No. 89/79-C.E. and 4% ad valorem duty would work to Rs. 17,256/-. He, therefore, set aside, the Asstt. Collector's order and ordered recovery of the amount from the appellants. He, however, did not impose any penalty on the appellants. 4.  Aggrieved with this order, the appellants have filed the present appeal. At the hearing of the appeal Shri A. Hidayatullah, learned Counsel for the appellants submitted that the Fare Meters were not meant for home consumption nor were they capable of being utilised for home consumption because their tariff was based on the Ceylonese rates and markings were in Ceylonese currency. They were fitted with double counters which are not used in auto-rickshaws in India, gear box arrangement was different to that for meters made for home consumption, cartons were all marked MSHC and Colombo which are export cartons. M/s Bajaj & A.P.I, were given sales tax exemption for export of goods by Form 14 issued under Section 12 of the Bombay Sales Tax Act, 1959. The type and specification of the meters was as given by the Ceylonese Importers and they were not manufactured for home consumption. He further submitted that meters were in fact ex....
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....ared for export. Goods cleared for export and actually exported out of India cannot be considered as goods cleared for home consumption and as a consequence the value of such goods cannot be taken into consideration for computation of the value of clearance under the Notification No. 105/80-C.E. A comparative statement showing the points considered by the Tribunal in International Minelmech's case and between the present case was filed before the Bench. The points of comparison are set out in tabulated form below :- Factors showing goods were for export and actually exported in International Minelmech. Factors showing goods were for export and actually exported in Appellants' case. 1. Ballarpur certified goods were exported  1. Bajaj and API certified goods were exported. 2. Order placed by Ballarpur on I.M. showed goods were for specific purpose of export.  2. Purchase order by Bajaj on Appellants' shows goods were to be manufactured according to Srilanka party's requirements (double counters, Rs-cents and Srilanka Tariff) 3. Invoices of I.M. shows goods were supplied against specific orders for export. &em....
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....ison between precedent and the present appeal. 9.  He submitted that A.R. 4 Forms presented by Bajaj and API describe the goods for export as Bajaj Auto-rickshaws with spares tyres and tubes. The value of the auto-rickshaws indicated by Bajaj in AR 4 Form was inclusive of value of accessories including the fare meters. The letter of credit and shipping bills of API describe the goods meant for export as auto-rickshaws inter-alia fitted with fare meters. The value indicated in the shipping bills and other documents was for the entire unit and not separately for the accessories which were not sent or fitted along with vehicles. He submitted that just because the components were indicated separately in the packing list it could not be concluded that Bajaj & API were exporting the items individually. He further urged that Drawback, cash assistance etc. were available to Bajaj and API on complete auto-rickshaws and not to their individual components. He gave analogy of a printed carton manufacturer manufacturing with writing in foreign language clearly meant for foreign use in a foreign country. He submitted that it could not be said that the printed cartons were for home consum....
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....s for Sales Tax purposes i.e. a declaration that the fare meters were not for use in the manufacture of the auto-rickshaw (otherwise Form 15 would have been issued). (b) Auto-rickshaws are complete, sold and used without tare meters. (c) A "part" has to be something without which the goods in question are not complete and not usable and this test is not satisfied, in the case of fare meters. (d) An "accessory" is something which adds to the convenience or effectiveness which test is not satisfied in the case of fare meters. (iii) In any event, the issue cannot be raised at this stage as the Appellate Tribunal is bound by the scope of the review show cause notice where the only issue is whether the fare meters were fitted to the auto-rickshaws at the time of export so as to contend they were cleared for home consumption. An appellate authority is bound by the jurisdiction exercisable by the subordinate authority. (iv) The question of C.K.D. condition of the exports may be relevant to only the various parts of the autorickshaw and not other goods exported at the same time. (v) The certificate of Bajaj and API are relevant material which explain what was meant in the....
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....ect the Department to place a copy of this order before the Bench. That has not been done. 14.  As to 5 fare meters, which have directly been exported by the appellants, though proper documents for the purpose were not filed by the appellants, the Department does not dispute that the appellants should get the benefit in respect of these five fare meters. These would therefore, have to be excluded while computing the value of clearances made by the appellants. About 23 meters supplied by the appellants to API, though API has given a certificate that meters were packed in separate boxes and were not fitted on auto-rickshaws, we find that Bill of Lading in respect of API placed on file shows that auto-rickshaws were fitted with fare meters. From this, in the absence of copy of the order placed by the overseas buyers it could be safely presumed that the order must have been for auto-rickshaws taxis. In the circumstances, with respect to 23 fare meters relying on the document, it could be concluded that the fare meters had been consumed in auto-rickshaws taxis and what was exported was taxi auto-rickshaws. The Certificate issued by the API does not help the appellants in view of....