COMMISSIONER OF CENTRAL EXCISE Vs. MUNJAL GASES

JUDGEMENT

(1.) The issue involved in this appeal, filed by Revenue, is whether the Respondents M/s. Munjal Gases are eligible to avail exemption under Notification No. 1/93 -CE., dated 28 -2 -93.

(2.) Shri Jagdish Singh, learned DR, submitted that the Respondents in their unit No. 1 manufactured Oxygen gases and claimed exemption from payment of duty under Notification No. 1/93; that the Deputy Commissioner, under Order -in -Original No. 379 -82/99, dated 6 -3 -2000 disallowed the benefit of the Notification and confirmed the demand of duty of excise on the ground that as in their second unit, manufacturing Acetylene gas, they paid the Central Excise. duty and availed of Modvat credit and as both the units were one organisation, that, however, the Commissioner (Appeals), allowed the appeal filed by the Respondents following the Tribunal's decision in their own case vide Final Order No. 500 -501 / -C, dated 25 -6 -1999. The learned SDR, further, submitted that Notification No. 1/93 -C.E. clearly mentions that if a manufacturer avails the Modvat credit, he cannot effect the clearances of goods availing exemption from payment of duty; that Notification No. 1/93 -C.E. refers to a "manufacturer" and not "unit"; that, further, the notification also mentions about clearance by a manufacturer from one or more factories,

(3.) On the other hand, Shri J.P. Kaushik, learned Advocate, submitted that unit I and unit II are separate factories for the purpose of Central Excise having two separate Excise Licenses; that declaration filed for availing Modvat credit by unit No. II has nothing to do with the exemption from payment of duty claimed by unit No. I. He finally mentioned that the issue has been settled by the Tribunal in their own matter vide Final Order No. 500 -501/99 -C, dated 21 -6 -99.