2018 (5) TMI 1055

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....n allowing the Appeal of the Respondent and holding that the value of chassis has to be excluded from the value of aggregate value of clearances for home consumption with respect to the present facts ? [B] Whether in the facts and circumstances of the case and law, the Hon'ble Tribunal has committed substantial error of law in holding that the Manufacturer - Respondent is entitled to cumduty benefit?" 2. The questions are interlinked. The first issue revolves around the question whether the value of chassis which the respondent assessee uses for fitting bodies upon manufactured vehicles should be included for ascertaining the assessee's value of aggregate clearances for the purpose of exemption as a Small Scale Industria....

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....the assessee. The Tribunal placed reliance on para 3(b) of the same notification no.8 of 2003. 5. Having heard learned advocates for the parties and having perused the documents on record, we are of the opinion that to arrive at the correct answer, one has to read the above two provisions of the notification no.8 of 2003 conjointly. Notification no.8 of 2003 is at exemption notification issued by the Central Government in exercising of powers under subsection (1) of section 5A of the Central Excise Act. It supersedes earlier similar exemption notification No.6 of 2002. The notification exempts the eligible assessees from payment of entire duty of excise specified in the first schedule of the Central Excise Tariff Act that is the basic du....

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.... (b) clearances of the specified goods which are used as inputs for further manufacture of any specified goods within the factory of production of the specified goods; Thus, this para clearly provides that for the purpose of determining the aggregate value for home consumption clearances of the specified goods which are used as inputs for further manufacture of any specified goods within the factory of production of the specified goods shall not be taken into account. When therefore one is ascertaining the aggregate value of clearances of all excisable goods for home consumption for the purpose of clause( vii) of para 2 of the said notification, in terms of clause( b) of para 3 thereof, the value of clearances of specified goods ....