2015 (1) TMI 988

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....ariff Excise Act. During the period 2000-01 and 2001-02, the appellants manufactured and cleared the Hangers within local market as well as exported. They claimed that they were within the purview of the exemption limit under SSI exemption. Show Cause Notices were issued proposing demand of duty along with interest and penalty, denying the benefit of the SSI exemption notification. 2.1 In Appeal No. E/160/2005, earlier the adjudicating authority vide OIO No.34/2002 dt. 29.11.2002 confirmed the demand of duty along with interest and penalty. The Commissioner (Appeals) vide Order-in-Appeal No.50/2003 dt. 1.5.2003 directed that the adjudicating authority has not taken into consideration the exempted export goods to be excluded while computi....

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....d under Rule 13 of the erstwhile Central Excise Rules, 1944 allowed exemption from duty all excisable goods used for the manufacture of export products. The Central Board of Excise & Customs, vide Circular No.648/39/2002-CX. dt. 25.7.2002 simplified the export procedure for exempted units limit particularly by SSI manufacturers. It was represented before the Board by the Small Scale Manufacturers with a request to accept the sales tax documents as a proof of export for the supplies made to other domestic manufacturer who use the said goods in manufacture/packing of goods for export. It was also requested that the value of such clearances would be excluded from the total value of domestic clearances for the purpose of availing SSI exemption.....

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....findings of the adjudicating authority in OIO dt. 27.7.2004 is reproduced below :-                "In this case, the assessee has cleared plastic hangers to the following units under Form H except Serial No.1 1. M/s.Network Clothing Company (P) Ltd., Tirupur 2. M/s. Amstrong Knitting Mills, Tirupur 3. M/s.C.S. Garments, Tirupur 4. M/s.Stanfab Apparels, Chennai 5. M/s.R.R. Leather Products Pvt. Ltd., Chennai etc. 6. M/s.BNT Innovations, Tirupur 7. M/s.Gomathi International, Tirupur 8. M/s.Fulchand & Sons, Mumbai. These hangers have been exported along with garments by the above mentioned units. The corroborative documents for export of hangers....