TaxTMI 
TaxTMI 
2009 (3) TMI 191
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....ns a challenge against demand of interest on duty, as also against the penalty equal to duty, imposed on the assesee. After examining the records, I find that the appellants were availing the benefit of the above Notification up to the value of Rs. 1 crore and accordingly their first clearances of the specified goods up to the said value of Rs. 1 crore were effected without payment of duty. Obviously there was no occasion for them to avail Cenvat credit on inputs in respect of such clearances. However, in respect of those specified excisable goods which were cleared under the brand-names of third parties, the appellants paid duty by availing Cenvat credit on inputs. The department took the view that they were not entitled to avail SSI exemp....
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....orrectly distinguished by this Tribunal in the case of Nebulae Health Care Ltd. v. Commissioner of Customs, Chennai 2007 (209) E.L.T. 125 (Tri. - Chennai). According to the learned counsel, the present appeal has to be allowed in view of the decision in Nebulae Health Care Ltd. (supra). On the other hand, the learned DR points out that the department has filed a Civil Appeal against the Tribunal's decision in Nebulae Health Care Ltd. and that the appeal stands admitted by the apex Court. In her rejoinder, the learned counsel for the appellants submits that, there being no stay of operation of the Tribunal's decision in Nebulae Health Care Ltd. (supra), that decision needs to be followed in the instant case. Both sides have also referred ext....
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....ng SSI exemption under Notification No. 8/2003-C.E. were contained in para 2 thereof. Condition No. 2(iii) was that the manufacturer shall not avail credit of duty on inputs under Rule (3) or Rule 11 of the Cenvat Credit Rules, 2002, paid on inputs used in the manufacture of these goods cleared for home consumption, the aggregate value of first clearances of which, as calculated in the manner specified in the table annexed to the Notification, does not exceed Rs. 100 lakhs. Conditions (i) and (ii) pertain to exercise of option for not availing exemption under the Notification. Where such option was not exercised, all specified goods manufactured by SSI unit would automatically get covered by the exemption-related provisions of the Notificat....
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....on, is cautioned against availment of Cenvat credit on input used in, or in relation to, the manufacture of specified goods cleared without payment of duty by availing SSI exemption, and utilization of such credit for payment of duty on other goods. To my mind, this is the purpose which was sought to be served by condition No. (iii) in para 2 of the Notification. In this context, a proviso added to Clause (iii) of para 2 of the Notification is of much aid to correct understanding of the import of Clause (iii). This proviso reads as under : "Provided that nothing contained in this clause shall apply to the inputs used in the manufacture of specified goods bearing the brand name or trade name of another person, which are ineligible for the....