TaxTMI 
TaxTMI 
1984 (8) TMI 339
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....ion for the period 1-4-1981 to 30-9-1981. 2. Notification No. 80/80-C.E. granted exemption to small scale manufacturers in the matter of Central Excise duty. The notification was not applicable to a manufacturer : (i) if the aggregate value of clearances of the specified goods, if any, by him or on his behalf, for home consumption, from one or more factories, during the preceding financial year, had exceeded rupees fifteen lakhs; (ii) who manufactures excisable goods falling under more than one Item Number of the said First Schedule and the aggregate value of clearances of all excisable goods by him or on his behalf, for home consumption, from one or more factories, during the preceding financial year, had exceeded rupees twen....
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....to concession under the notification for the period 1-4-1981 to 30-9-1981 would have to be determined on the basis of preceding financial year 1-4-1980 to 31-3-1981 clearances. It is to be seen whether the appellants during the period exceeded the limit of Rs. 15 lakhs. For the financial year 1980-81 (1-4-1980 to 31-3-1981), data furnished by the appellants is as under : Sl. No.      Description of item       1980-81 1. Electric Motors clearance value for home consumption.     13,43,443.55 2. Electric Motors for captive consumption for making monoblock pumps.      6.51138.50     19,94,582.5....
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....ll under the same item of the said First Schedule to the said Act, the clearances of such inputs for such use shall not be taken into account for the purposes of calculating the aggregate value of clearances under this notification." 8. From the Explanation, it would be seen that clearances of inputs is not to be taken into account for the purpose of calculating the aggregate value of clearances only when the inputs and finished products fall under the same item of the First Schedule to the Act. In the instant case, whereas Electric Motors fall under Tariff Item No. 30, Power Driven Pumps fall under Tariff Item 30A. Having regard to this explanation and the intention of the notification regarding exclusion in the case of captive con....
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.... contended that rotors and stators used by the appellants had been given special shape and size and could not at all be used for making electric motors. They could only be treated as component parts of monoblock pumps and should therefore be excluded in determining the value of clearances. For the purpose he relied on a decision of Delhi High Court in Century Spinning & Manufacturing Co. Ltd. v. Union of India - 1980 E.L.T. 721 (Delhi). He also relied on a certificate dated 5-1-1982 by Shri B.G. Desai of the Devki R & D Engineering. This certificate in the end says that "Rotors of motors for monoblock pumps are specially constructed components fitting the pump assembly. They cannot be used to assemble a general purpose independent motor". S....
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.... stators and rotors had been used. The value of rotors and stators would be far less than this amount. For this the appellants themselves are to blame. Even before the Tribunal they did not bring out the figures as to what would be the value of rotors and stators used. We are told that only minimal processing is necessary with rotors and stators in assembling monoblock pump. The appellants admit clearances of Rs. 13,43,443.55. Even if only a sum of Rs. 1,57,000/-out of Rs. 6,51,138.50 which the appellants themselves admit to be clearance value of electric motors and which they now claim to be rotors and stators, be taken to be the value of rotors and stators, the appellants would exceed the clearance limit of Rs. 15 lakhs as stipulated by t....