2017 (8) TMI 1212

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....ncial year 2003-04. In addition to the Unit at Gummidipoondi, Chennai, the appellant also has Unit in Pondicherry, Bangalore and Goa, where they manufactured toilet soaps under the brand name of "MEDIMIX" Ayurvedic Soap. The Goa Unit was manufacturing the soap using power and hence the goods were classified under 3401.90 attracting 16%. However, in Pondicherry and Bangalore Units they are manufacturing "MEDIMIX" soap without aid of power and hence classified under 3401.12 attracting 'nil' rate of duty. Taking the view that the clearances of all excisable goods in respect of all four Units have to be taken for computation of aggregate value of clearances, the department found that such value exceeded Rs. 300 lakhs in the financial year 2002-....

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....ed at 'nil' rate of duty" has to be included while computing aggregate value of clearances of Rs. 300 lakhs during the previous financial year. 4. Heard both sides and perused the records. 5. The appellant has got four Units manufacturing soaps - at Pondicherry, Bangalore, Goa and Chennai. The dispute is with reference to Chennai Unit. In the impugned order, it has been held that the Chennai Unit will not be eligible for the benefit of SSI exemption for the financial year 2003-04 for the reason that in the financial year 2002-03, the aggregate value of clearances of all excisable goods for non consumption by the appellant from all its factories has exceeded Rs. 300 lakhs. This gap of Rs. 300 lakhs has been specified in clause 2(vii) o....

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.... (c) ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ..." 6.1 The core issue for decision in the present case is whether the clearances made from Pondicherry, Bangalore Units with MEDIMIX brand, cleared at 'nil' rate of duty under Tariff rate will be excludible. Para 4 of the notification specifies that the exemption under the notification shall not be applicable to goods bearing the brand name of another person. 6.2 When the scheme of the SSI notification is considered as a whole, it is seen that branded goods which are not eligible for the benefit of the notification are to be cleared on payment of full duty without availing such exemption. Para 2 (vii) enforces a cap of Rs. 300 lakhs in the preceding f....