2017 (3) TMI 1208

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.... to Central Excise duty. They were availing small scale exemption in terms of Notification 8/2003-CE dated 01/03/2003. They were also manufacturing and clearing pumps and parts for M/s Kirloskar Brothers Ltd. bearing brand name of the client. For such clearance of branded goods the appellants were discharging duty as applicable. The dispute in the present case is relating to the eligibility of the appellant for exemption upto threshold limit in terms of the above said notification, in respect of their own goods manufactured and cleared without brand name of another person. The lower authorities held that since they were manufacturing and clearing goods with other's brand name (on payment of duty) as well as own brand goods (without payment ....

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....y availing the Cenvat credit. The availment of credit in respect of dutiable final products cannot be held as a bar for eligibility of SSI exemption in respect of own goods. The relevant observation of the Hon'ble Supreme Court is as below:- "17. A holistic reading of the Notification, in the light of the other paragraphs, brings into focus the overall scheme. It, inter alia, provides that the clearances bearing the brand name or trade name of third parties which are ineligible for grant of this exemption, for the purposes of determining aggregate value of clearances for home consumption, are not to be included. These Notifications also make it clear that the exemption contained therein is not to apply to the specified goods bearing a br....

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....ifferently in the sense that they do not come within the ambit of exemption on which normally excise duty, as per the provisions of the Act, is payable. As a sequitur, it also follows that once excise duty is paid by the manufacturer on such branded goods manufactured, the brand name whereof belongs to another person, on job work basis, the SSI Unit would be entitled to Cenvat/Modvat credit on the inputs which were used for manufacture of such goods as on those inputs also excise duty was paid. To put it otherwise, these branded goods manufactured by the SSI Units meant for third parties are regulated by the normal provisions of excise law and will have no bearing or relevance insofar as availing the benefit of those exemption notifications....