2008 (9) TMI 265

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....pellants and Shri K. Sambi Reddy, learned JDR appeared for the Revenue. 3. We have heard both the sides in the matter. The appellants are engaged in the manufacture of Ice-cream and sip up along with other dairy products like milk, ghee, butter etc. under the brand name 'MILMA' owned by M/s. KCMMF, Trivandrum. They were availing the SSI exemption. But with effect from 1-4-2003, the Department disallowed the benefit of SSI exemption consequent to the Notification No. 8/2003-C.E., dated 1-3-2003 on the ground that the aggregate value of clearances of all excisable goods including nil rate of duty items had exceeded Rs. 300 lakhs during the previous financial year 2002-03. The appellants paid the duty of Rs. 4,44,894/- on 31-7-2004 before t....

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.... the item pertaining to nil rate and exempted goods. The terms of Notification No. 8/2003 are that while computing the value of clearances of previous year, the value of the goods cleared at nil rate of duty and also the value of exempted goods should be taken into account. The appellant relied on the decision of the Tribunal in the case of Aruna Strawboards Pvt. Ltd. [2004 (171) E.L.T. 284], Sellammal Spinners [1998 (104) E.L.T. 685] and Shree Radhey Textiles [2002 (143) E.L.T. 91]. It was argued that the show cause notice demanded duty for the period from 1-4-2003 to 31-5-2004 is barred by time in terms of Section 11A of the Central Excise Act, 1944 since the show cause notice is dated 29-10-2004. It was pleaded that the demand is time-ba....

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....f clearances of all excisable goods for home consumption by a manufacturer from one or more factories, or from a factory by one or more manufacturers, does not exceed rupees three hundred lakhs in the preceding financial year." This notification says that in the previous year, the aggregate value of the clearances of all excisable goods is more than Rs. 300 lakhs, then the assessee would not be entitled for the benefit of the notification. The point is how to calculate the aggregate value of the clearances for the previous year. In the earlier notification, namely 8/2002 dated 1-3-2002 in terms of Para 3(a), the clearance of exempted goods and nil rate of duty goods would not be taken into account. But in the Notification No. 8/2003, suc....