1988 (11) TMI 107

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....is engaged in the business of manufacturing and selling electric motors. 3. In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government issued Notification No. 80/80-C.E. dated 19th June, 1980, which, as it stood during the relevant period, exempted from duty excisable goods falling under certain Item Numbers of the First Schedule to the Central Excises and Salt Act, 1944 as specified in the Table annexed to the Notification and of the particular description set forth in that Table. But paragraph 2 of the Notification declared : "Nothing contained in this notification shall apply to a manufacturer, - (i) if the aggregate value of clearances of all excisable goods by him or on hi....

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....1981. 4. For the financial year 1 April 1980 to 31 March 1981 the appellant had disclosed a clearance value of Rs. 13,43,443.55 on account of electric motors for home consumption and a clearance value of Rs. 6,51,138.50 on account of electric motors "for captive consumption" in the manufacture of monoblock pumps. It was contended by the appellant that the electric motors used for making monoblock pumps could not be taken into consideration when calculating the clearances eligible under the Notification. According to the appellant the captive consumption did not amount to clearance. The claim was disputed by the Department, which relied on Explanation V to the aforesaid Notification dated 19 June 1980. The explanation declared: "Explanatio....

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....xceeded the limit stipulated by Notification No. 80/80-C.E. dated 19 June 1980, and was, therefore, disentitled to the concession. 5. It is contended before us that the Appellate Tribunal erred in rejecting the sub mission of the appellant that the goods manufactured by the appellant did not entitle it to the benefit of Explanation 5 of the Notification. It is urged that the goods in question were rotors and stators, that they were integral components of monoblock motors and could not be considered as components of general purpose Motors and therefore fell within the same Tariff Item as monoblock pumps. The question has been considered by the Appellate Tribunal. It is a question of fact and we do not propose to entertain it at this stage. ....