TaxTMI 
TaxTMI 
2017 (8) TMI 546
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.... dated 28.02.99, for the period January 99 February 99 and April 99 to September 99. During the course of manufacture of such goods, plastic sheets classifiable under sub-heading 3920.31 also emerged. The Department was of the view that since the final products were cleared availing full exemption, the plastic sheets emerging as intermediate goods were subject to duty liability @ 24%. A Show Cause Notice was issued alleging the above, demanding differential duty and also proposing imposition of penalty. After due process of law, the original authority confirmed duty liability of Rs. 3,92,045/- and imposed penalty of Rs. 5,000/- under 173Q of Central Excise Rules, 1944. In appeal, the Commissioner (Appeals) upheld the same. Hence this appeal....
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.... the appellant company was subsequently changed as M/s. AKR Plastics. 3. Against this, the Ld. AR, Shri S. Govindarajan, AC, reiterated the findings in the impugned order. 4. We have heard the submissions made by both sides. 5. Show cause notice has been issued alleging that the appellants are not eligible to avail the exemption on intermediate product namely plastic sheets for the reason that they are availing value based exemption of SSI unit for the finished products. The authorities below have relied upon the explanation introduced by the amendment Notification No. 67/97-CE dated 26.11.97. The plastic sheets (39.20) are specified as finished goods under Notification No. 16/97, which grants exemption to such goods to a value of cleara....
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....ng both sides and perusal of case records as well as the impugned notifications and the amending notifications, we find that clause (f) to the Explanation merely provides a rider in relation to paragraph 3(c) of the Notification No. 16/97. Paragraph 3 is a provision for determining aggregate value of clearances and under clause (c) thereof it is provided that captively consumed inputs shall be deemed to be exempt and shall not be taken into account for calculating the aggregate value of clearances. The rider provided under clause (e) to the Explanation states that the inputs shall not be deemed to be exempt under clause (c) of paragraph 3 where the finished goods are exempt under any other notification. As such, the newly introduced provisi....