2014 (12) TMI 159

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....demands of Rs. 26,23,069/-, Rs. 33,66,868/- and Rs. 22,27,754/- have been confirmed against M/s. Victory Container Depot, M/s. Victory Container Services and M/s. Victory Portable Cabins, respectively, by denying the benefit of Notification No. 8/2003-C.E., dated 1-3-2003 and clubbing the clearances of the excisable goods manufactured by them. In addition, interest liability on the above duty demands has been confirmed apart from imposing equivalent amount of penalties. Aggrieved of the same, the appellants are before us. 3. The learned Counsel for the appellants submits that these three appellants are different and distinct legal entities and they have maintained separate records for the procurement of raw materials, production and....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....factory-wise and manufacturer-wise. Thus the notification envisages clubbing of clearances both qua manufacturer and qua factory. If this is done, it can be seen that the appellants are not eligible for the duty exemption. As regards the invocation of extended period of time, the ld. AR submits that the appellants have never disclosed their activities to the department at any point of time. Therefore, the extended period of time has been rightly invoked for confirmation of duty demands. Accordingly, he pleads for putting the appellants to terms. 5. We have carefully considered the submissions made by both the sides. 5.1 Notification No. 8/2003-C.E. grants duty exemption to small scale manufacturers, subject to conditions. Th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of the amount calculated at the rate specified in the corresponding entry in column (3) of the said Table : Provided that nothing contained in this notification shall apply to a manufacturer who has availed the exemption under Notification No. 39/2001-Central Excise, dated the 31st July, 2001, published in the Gazette of India vide number G.S.R. 565 (E), dated the 31st July, 2001, in the same financial year. Table S. No. Value of clearances Rate of duty (1) (2) (3) 1. First clearances up to an aggregate value not exceeding one hundred lakh rupees made on or after the 1st day of April in any financial year. Nil 2. All clearances of the specified goods which are used as inputs for further manufacture of....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e option; (iii)    .............................................................. (iv)    .............................................................. (v)     where a manufacturer clears the specified goods from one or more factories, the exemption in his case shall apply to the aggregate value of clearances mentioned against each of the serial numbers in the said Table and not separately for each factory; (vi)    where the specified goods are cleared by one or more manufacturers from a factory, the exemption shall apply to the aggregate value of clearances mentioned against each of the serial numbers in the said Table and not separately for each manufacturer; ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ma facie sustainable. Further notification envisages giving an option for not availing the exemption. Therefore, the plea that extended period of time could not have been invoked for confirmation of duty demand is not prima facie acceptable. 5.4 As regards the plea of financial hardship, we have gone through the balance sheets produced by the appellants. From the balance sheets as on 31-3-2013, it is seen that all the firms are profit-making firms. The gross and net profits of the appellants are as below :- S. No. Name of the appellant Gross profit (Rs. Lakhs) Net profit  (Rs. Lakhs) 1 Victory Container Depot 28.62 5.11 2 Victory Container Service 23.15 4.25 3 Victory Container Movers &....