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CUSTOMS, EXCISE AND GOLD (CONTROL) APPELLATE TRIBUNAL, MADRAS
S. Kalyanam, V.P. Gulati, JJ.
Watts Electronics (P.) Ltd. -Appellant
Versus
Collector of Central Excise, Kochi -Respondent
Order No. 135/93 Appeal No. E/827/92/MAD., 135 of 1993, E/827 of 1992
Decided On : 03-04-1993
Balaraman,J.M. Jayaseelan
V.P. Gulati, Member (T)
1. This appeal is against the order of the Collector of Central Excise (Appeals), Cochin. The short point that falls for consideration in the appeal is as to how the aggregate value of the clearances of specified goods has to be commuted when a unit starts availing of the benefit of Notification 175/86 not in the beginning of the financial year but somewhere during the course of the financial year. In the present case the appellants were clearing the goods after paying duty as per Tariff rate from 1-4-1991 to 4-8-1991 and started availing of the benefit of Notification 175/86 with effect from 5-8-1991. Under the Notification 175/86 the specified goods at the exempted rates can be cleared upto the limits under paras 1(a) and 1(b) and para 2 of the Notification. These for convenience of reference are reproduced below:
"In exercise of the powers conferred by Sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 85/85-Central Excises, dated the 17th March, 1985, the Central Government hereby exempts the excisable goods of the description specified in the Annexure below and falling under the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), (hereinafter referred to as the "specified goods"), and cleared for home consumption on or after the 1st day of April in any financial year, by a manufacturer from one or more factories,-
(a) In the case of first clearances of the specified goods upto an aggregate value not exceeding rupees thirty lakhs-
(i) in a case where a manufacturer avails of the credit of the duty paid on inputs used in the manufacture of the specified goods cleared for home consumption under Rule 57A of the said Rules, from so much of the duty of excise leviable thereon which is specified in the said Schedule [read with any relevant notification issued under Sub-rule (1) of Rule 8 of the said Rules and in force for the time being] as is equivalent to an amount calculated at the rate of 10% ad valorem:
(ii) in any other case from the whole of the duty of excise leviable thereon:
Provided that the aggregate value of clearances of the specified goods under Sub-clause (ii) of this clause in respect of any one heading No. of the said Schedule, shall not exceed rupees fifteen lakhs;
(b) in the case of clearances (being the clearances of the specified goods of an aggregate value not exceeding rupees sixty lakhs) immediately following the said clearances of the value specified in clause (a) from so much of the duty of excise leviable thereon which is specified in the said Schedule read with any relevant notification issued under Sub-rule (1) of Rule 8 of the said Rules as is equivalent to an amount calculated at the rate of 10% ad valorem:
Provided that the amount of duty of excise payable on the specified goods under Sub-clause (i) of Clause (a), or, as the case may be, under this clause, shall not be less than an amount calculated at the rate of 5% ad valorem:
Provided further that the aggregate value of clearances of the specified goods in terms of clause (a) and clause (b) of this paragraph taken together, shall not exceed rupees seventy-five lakhs.
2. The aggregate value of clearances of the specified goods from any factory by one or more manufacturers in any financial year under Clauses (a) and (b) of paragraph 1, shall not exceed rupees thirty lakhs and sixty lakhs respectively:
Provided that the aggregate value of clearances of the specified goods from any factory by one or more manufacturers in any financial year in terms of clause (a) and clause (b) of paragraph 1, taken together, shall not exceed rupees seventy-five lakhs.
3. Nothing contained in this notification shall apply if the aggregate value of clearances of all excisable goods for home consumption,-
(a) by a manufacturer, from one or more factories, or
(b) from any factory, by one or mo
