Customs, Excise and Gold Tribunal - Delhi
M/S. Danke Products vs Cce, Mumbai-Iii on 22 February, 2001
ORDER
Lajja Ram
1. In this appeal filed by M/s. Danke Products, the matter relates to the small scale exemption, which was being availed by the appellants during the period 25.3.86 to 31.3.86. The appellants were availing of the benefit of Notification No. 77/85 CE dated 1.3.85 prior to the introduction of the new Central Excise Tariff. On introduction of the new Central Excise Tariff, Notification No.77/85 CE was replaced by Notification No.175/86 CE dated 1.3.86. This Notification No.175/86 CE was suspended for the period 25.3.86 to 31.3.86 and instead Notification No.213/86 CE dated 25.03.86 was issued to provide the same level of exemption to the assessees that was earlier available to them under Notification No.77/.85 CE. One of the conditions of eligibility to the benefit of small scale exemption under Notification No.213/86 CE was that the value of clearances in the financial year should not have exceeded Rs. 40,00,000/-. The value of clearances of the appellants has already exceeded Rs.40,00,000/- prior to 25.3.86. Thus, they were not eligible for the benefit of small scale exemption under the new Notification No.213/86 CE during the period 25.3.86 to 31.3.86. The show cause notice was issued demanding central excise duty of Rs.56,448/-. It was confirmed by the Asstt. Collector of Central Excise, whose orders was confirmed by the Collector of Central Excise, Bomaby. The appellants have prayed for decision on merits and filed written submissions.
2. We have heard Shri Ashok Kumar, JDR and have gone through the facts on record.
3. The facts are not in dispute. The appellants were availing of the benefit of Notification No.175/86 CE under the new Central Excise Tariff. Their value of clearances had already exceeded Rs.40,00,000/- when this Notification was suspended and a new Notification No.213/86 CE was issued. As the exemption under the new Notification was also subject to the conditions that the value of clearances should not have exceeded Rs.40,00,000/- in the financial year, we consider that the benefit of exemption could not be availed of under this Notification as the condition subject to which the benefit was available, had not been fulfilled. Thus, on merits, we consider that there is no infirmity in the view taken by the adjudicating authority, whose orders has been confirmed by the Collector of Central Excise (Appeals).
4. In the appeal before the Collector of Central Excise (Appeals), the main ground taken by the appellants was that the Notification No.213/86 CE dated 25.03.86 did not come to their notice. They have referred to the Bombay High Court's decision that the Notification was applicable from the date of knowledge.
5. We find that the Supreme Court in the case of Union of India Vs. Ganesh Das Bhojraj - 2000 (116) ELT 431 (SC) had held that Notification was effective from the date of the Gazette.
6. In the written submissions, it has been pleaded that Notification No.213/86 CE had been given retrospective effect from 1.3.86 itself. We find that as the benefit of small scale exemption even under Notification No.213/86 CE was not available when the value of clearances had already been exceeded Rs.40,00,000/-, the retrospective effect will have no bearing on the facts in the present case.
7. Taking into account the facts and circumstances of the case, we do not find any merit in this appeal and the same is rejected. Ordered accordingly.
Order dictated & pronounced in the Open Court on 22.02.2001.