S. Kalyanam, Member (J)

1. The above appeals arise out of a common impugned order of the Collector of Central Excise (Appeals), Madras dated 29-6-1988. At the outset Shri M. Santhanam, the Learned Counsel for the appellants submitted that the appellants are not pressing the issue in relation to Valuation and would confine themselves only with reference to the limited question of their entitlement to the benefit of Central Excise Notification No. 175/86, dated 1-3-1986 in respect of the clearances of inputs in question. It was urged that the authorities below have taken the view that the exemption from duty is available as long as the duty-free clearances/value of the first clearances from the factory does not exceed Rs. 30 lakhs in terms of Notification 175/86 cited supra. The Department's view is that if the same limit is crossed, the duty-free clearances of the goods are not eligible for a factory or a manufacturer and the assessee should so arrange that after taking Rs. 15 lakhs of duty-free clearances of one item and stop clearance and avail duty-free clearances of the other item.

2. Shri Santhanam, the Learned Counsel contended that this reasoning of the authorities below is not correct on a plain construction of the terms of the notification in question and apart from it it was urged that the issue is no longer res integra and is covered by the ruling of the Bench of this Tribunal in the case of "EL.P.EM. Industries v. Collector of Central Excise" - reported in MANU/CC/0042/1989 : 1989 (43) ELT 599 (Tribunal) - and also another ruling of a single Member Bench of this Tribunal in the case of Purushotham Goculdas Plywood Co. v. Collector of C. Ex. - reported in MANU/CC/0017/1989 : 1990 (47) ELT 30 (Tribunal). It was, therefore, urged that the appellant is entitled to the benefit of the notification in question in respect of the goods classifiable under 4016.11 and 4008.11 and also 9454.

3. Shri P.B. Vedantham, the Learned D.R. urged that he would adopt the reasoning of the authorities below in the impugned order.

4. We have carefully considered the submissions made before us. The short question that arises for our consideration in the present appeals is that if a manufacturer manufactures more than one specified goods and avails the benefit of the exemption in respect of the clearances of one particular item and then clears in excess of the same on payment of duty would he become disentitled to the benefit of the notification on that score. We have gone through the rulings relied upon by the learned Counsel and the Bench of this Tribunal in EL.P.EM. Industries case dealing with an identical situation has held as under:-

"5. On a careful consideration of the submissions made by the learned Consultant and the learned SDR it is seen that clause (a) of Notification No. 175/86 grants exemption of the specified goods in the case of first clearances upto an aggregate value not exceeding Rs. 30 lakhs and it also has a proviso which says that the aggregate value of clearances of the specified goods under Sub-clause (ii) thereof, which is relevant to the present case, in respect of any one heading number of the tariff schedule shall not exceed Rs. 15 lakhs. The Notification NO. 175/86 is an integrated scheme providing for duty concessions with reference to the value of first clearances made in a financial year computed from April to March. For first clearances beginning from First April in any financial year full exemption from the excise duty can be availed of upto a limit of Rs. 15 lakhs with respect to goods falling under any one heading of the tariff. Thereafter the concessional rate will apply on clearances upto a total limit of Rs. 75 lakhs and when the clearances cross Rs. 75 lakhs, the normal duty will be payable. A careful reading of the Notification Clause (a) with its proviso as stated above would show that it provides for duty free clearances upto Rs. 15 lakhs under one heading of the tariff and upto Rs. 30 lakhs for mor