Different firms will be treated as different manufacturers for the purpose of the exemption limit under Notification No. 175/86-C.E., but if a firm has more than one factory, all these factories will be combined.

K.A. SWAMI, C.J.

These writ appeals are preferred against the common order dated 6-10-1993 passed by the learned single Judge in W.P. Nos. 8885 of 1985, 5484 of 1988, 1539 of 1989 and 7333 of 1988 respectively. The question urged before the learned single Judge was as to the construction to be placed on the provisions relating to exemptions contained in Notification Nos. 80/80, dated 19-6-1980, as modified by another Notification dated 25-3-1981, 85/83, 85/85 and 175/86, as amended by Notification No. 174/89. After considering the various contentions, the learned single judge negatived the contention of the petitioners that the loan licensees should be treated as separate or in other words, as independent. In coming to that conclusion the learned single Judge has followed the decision of another learned single Judge of the Court in W.P. No. 1940 of 1981 etc., which has been approved by a Division Bench of this Court in W.A. Nos. 233 to 236 of 1991, dated 13-3-1991. In these Writ appeals, the Division Bench of this Court, on considering the Notification No. 80/80, dated 19-6-1980, as modified by the Notification No. 73/81, dated 25-3-1989, held as follows :

"Notification No. 80/80 C.E., dated 19-6-1980 was modified by Notification No. 73/81 C.E., dated 25-3-1981 issued under sub-rule 1 of Rule 8 of the Central Excise Rules, 1944. The appellants were aggrieved by a portion of the Notification dated 25-3-1981 which fixed the limit to seek exemption on the basis of the aggregate value of clearances of the specified goods from any factory by or on behalf of one or more manufacturers, and filed writ petition Nos. 5011, 5010, 6315 and 1940 of 1981 respectively in this Court which came to be dismissed by the learned single Judge by a common judgment dated 7-4-1990.It is well settled that the determination of the criteria for applicability of any exemption, is the prerogative of the Legislature or its delegate the executive as the case may be. The learned single Judge took note of the settled law and found that since in the matter of granting concession or granting exemption of tax, the Government has the wide latitude of discretionary power, Courts cannot interfere and command the Government to grant exemption in a particular manner. It is not disputed that in so far as the impugned notification is concerned, it is applicable to all those who are covered by the Notification. Courts cannot decide whether the policy of exempting certain articles followed by the Government is justified or not. The learned single Judge, therefore, rightly dismissed the writ petitions. We see no reason to take a contrary view. The writ appeals fail and they are dismissed."

Thus the view taken by the learned single Judge in W.P. Nos. 1940 of 1981 etc. was approved by the Division Bench of this Court. However, it is contended by Shri Alagirisamy, learned senior counsel that the exemption Notification No. 175/86 relating to clubbing of clearances of various firms to arrive at the aggregate value of clearances has not been correctly construed by the learned single Judge. In relation to the aforesaid Notification the learned single Judge has stated thus :

"In this connection, he invited my attention to W.M.P. Nos. 26177 and 26377 to 26330 of 1992. In all the W.M.Ps., the petitioners have prayed for permission for raising additional grounds, based on circulars of the Board. The Circulars referred therein say that each loan licensee was an independent manufacturer. There is no quarrel on that aspect. But while coming to the question of exemption, the decisions are to the effect that must be considered subject to Clauses 2 and 3 in the Notifications, along with Clause 4. If so considered, notwithstanding the fact that each loan licensee is an independent manufacturer, the clearances of such loan licensees will have to be clubbed along with the clearances of factory owners. Therefore, the circulars of the Board will not help the petitioners. However, W.M.P