TaxTMI 
TaxTMI 
2017 (6) TMI 971
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....yres with their own brand name without payment of duty, they reversed 10 % of the value of tyres. For clearance of goods with the brand name of JK Tyres, they made use of the credit for making payment of duty without the SSI concession. 2. Department took the view that the appellant will not be eligible for the benefit of SSI Notification in view of the fact that CENVAT credit on inputs stand availed by the appellant. Accordingly, duty demand amounting to was raised by disallowing the SSI concession. Penalty under Section 11AC also stand imposed. When the issue was carried to Commissioner(Appeals), the order of the original authority was upheld. However, the penalty under Section 11 AC was reduced to Rs. 25,000/-, Aggrieved by the impugned order, present appeal has been filed. 3. With the above background, we heard Shri Raghavendra B. Hanjeer, Advocate and Shri N. Jagadish, DR for the parties. 4. The learned advocate argued that the credit on inputs has been used for making payment of duty on goods bearing the brand name of JK Tyres which were not eligible for the SSI concession. To satisfy the requirements of the condition in Notification No.8/2003 that no CENVAT credit on inpu....
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.... both sides and perused the records. 9. The appellant has subscribed to avail the benefit of SSI exemption under Notification No.8/2003. In respect of goods manufactured and cleared with the brand name of JK tyres, they have paid excise duty without availing the SSI benefit. However it is on record that they have availed the CENVAT Credit on inputs in terms of Rule 3 of the CENVAT Credit Rules, 2002. The claim of the appellant is that they have satisfied the condition in the Notification, even though they have availed CENVAT credits, as they have reversed an amount @ 10% as specified in Rule 6(3)(b) of the CENVAT Credit Rules 2004. Accordingly their claim is that they will not be entitled to the benefit of SSI exemption. The issue for decision is whether the appellant will be entitled to avail the benefit of SSI exemption under notification no.08/2003 in the circumstances in which they have availed Cenvat Credit on inputs but have reversed the amount at the rate of 10% in terms of Rule 6(3)(b) of the Cenvat Credit Rules 2004. In respect of goods cleared with the brand name of J.K. Tyres the appellant has paid excise duty without availing the SSI exemption and hence would be entit....
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....t the Tribunal in the impugned decisions in both these appeals has decided the issue correctly. Admittedly, in respect of home production, the assessee had not availed the benefit of two options simultaneously as no Cenvat credit is claimed in respect of those goods. While doing so, the Tribunal has taken note of the judgment of this Court in Ramesh Food Products case and rightly analysed the same. We reproduce following discussion in the impugned judgment dated 228-2006 [2007 (209) E.L.T. 125 (Tribunal)] of the Tribunal (which is the subject matter of Civil Appeal No.2789 of 2007). "7. The provisions in the relevant Notifications to compute aggregate value of clearances mandate that the clearances of goods bearing brand name or trade name of another persons which are ineligible for the grant of exemption shall not be taken into account in determining the aggregate value of clearances. Therefore, value of clearances of goods bearing brand name of third parties without availing the benefit of Notification No.8/2003 is not reckoned for computing clearance value of rupees one hundred lakhs in any year for exemption benefit From these clauses contained in the relevant Notifications, ....
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....red by such other manufacturer or trader. 8.2 The above condition though present in the Notifications that replaced the scheme of duty benefit for SSI units contained in Notfn.175/86, value of such goods are specifically excluded from the computation of aggregate value in these Notfns. Clearances of goods bearing brand name of third parties is thus not governed by the Notfns. issued for the benefit of SSI units. xx xx xx 9.1 All the twin Notifications contain the following identical conditions excluding the goods bearing brand name of third parties from the purview of both the Notifications : "3. For the purpose of determining the aggregate of clearances for home consumptions, the following clearances shell be taken into account, namely : (b) xx xx xx (b) clearances bearing the brand name or trade name of another person, which are ineligible for the grant of this exemption in terms of paragraph 4 below. 4. The exemption contained in the Notification shall not apply to the specified goods bearing a brand name or trade name, whether registered or not, of another person, except in the following cases....". The exclusions mentioned are components manufactured for OE manufac....