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1.1 The appellant M/s. Spacetech Equipments and Structurals Pvt. Ltd. (SESPL) is engaged in the manufacture of LPG Road Tankers, Pressure Vessels, M.S. Storage Tanks, Mounting of LPG on Rigid and Trailer Chassis, falling under Chapter 73, 84 and 87 of the Central Excise Tariff Act, 1985 in its factory situated at Ambernath.
1.2 The main issue involved in these appeals pertains to clubbing of clearance of the appellant's unit with the clearances of two proprietorship concerns namely, Industrial Engineering Company (IEC) and Rashmi Shellcast & Foundry (RSF). On the basis of investigation, the Central Excise department contended that both IEC and RSF belonged to the appellant M/s SESPL and as such, the benefit of Notification Nos. 175/86 dated 01.03.1986 and 1/93 dated 01.03.1993 should not be available inasmuch as the combined turnover of all the three units during the disputed period had exceeded the eligibility criteria of Rs.200/300 Lacs. Accordingly, show cause proceedings were initiated vide notice dated 03.10.1994 against the appellant's unit, Shri Ganesh C. Ghosh, Managing Director and Shri Gautam Appeal No. E/1085to1087/2008 Ghosh, Director of the appellant company, seeking for confirmation of the duty demand and for imposition of penalties.
(i) Parle Bisleri Pvt. Ltd. Vs. CCE-2011 (263) ELT 15 (S.C.)
(ii) CCE Vs. Limca Flavours & Fragrances Ltd.-2006 (198) ELT 106 (Tri.-Mumbai)
(iii) L.D. Industries Vs. CCE-2003 (157) ELT 459 (Tri.-Del.)
(iv) Supreme Washers (P) Ltd. Vs. CCE-2003 (161) ELT 14 (S.C.)
(v) CCE Vs. Modi Alkalies & Chemicals Ltd.-2004 (171) ELT 155 (S.C.) 3.2 The learned Advocate further submitted that the SSI limits for the relevant period have been wrongly arrived at by including the value of the chassis in respect of LPG tanks manufactured by the appellant inasmuch as value of chassis is to be excluded in terms of Notification No. 241/86-C.E. dated 03.04.1986 and the circular dated 04.09.1986 issued by CBEC.

6.3 The genesis of the present impugned notice dated 03.10.1994 is the interception of two LPG Road Tankers on 08.07.1993 in the course of transit checks by the department. The investigation subsequently culminated in a separate show cause notice dated 16.12.1993 issued to M/s IEC, treating it as a manufacturer. Since, the department has considered M/s IEC as a manufacturer of excisable goods and accordingly, proceeded for confirmation of the duty demand, such stand cannot be altered subsequently, to hold that the said unit was physically not in existence and therefore, the clearances made by it should be clubbed with the value of clearances of the appellant.

6.4 The value of clearances for the purpose of availing SSI benefit, for the relevant period, has been wrongly arrived at by Appeal No. E/1085to1087/2008 the department in including the value of the chassis for the LPG tanks manufactured by the appellant. As per Notification No. 241/86-C.E. dated 03.04.1986 read with circular dated 04.09.1986 issued by CBEC, the value of chassis is required to be excluded for the value of the final product. We find that while computing the proposed demand for the earlier show cause notice dated 16.12.1993, the value of chassis was excluded by the department, which is evident from the annexure to such show cause notice. Thus, in this case since, there is no change in the method of valuation adopted by the appellant and without proper substantiation of the allegation, it cannot be asserted that the appellant should not be entitled for the benefit provided under the said notification. Hence, we do not find any merit in the impugned order, so far as it relates to denial of the benefit of such notification to the appellant.