AKASH HOUSING LIMITED Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) IN this case, benefit of exemption in terms of Notification No. dated 1.3.2001 has been denied to the appellants herein on the ground that their unit is situated in an urban area and not in rural area as claimed by them (para 4 (c) of the notification stipulates that exemption would be available to branded goods provided they are manufactured in a factory located in a rural area).

(2.) WE have heard both sides. The authorities below have relied upon Section 1 -A of the Tamil Nadu Urban Land Tax Act, 1966 and applying the act to area comprising within 16 kilometres of the outer limits (Guindy) of Chennai city to hold that the village Thelliyar Agaram in Iyappanthangal Panchayat being within 16 kilometres of the outer limit of Chennai city, was urban area and hence the benefit of the SSI Notification was not available to branded goods manufactured in the appellants factory situated in an urban area. However, we find force in the submissions of the appellants that since the land revenue records clearly show that Thelliyar Agaram is a village and since Thelliyar Agaram is not specifically notified as an urban area by the Central Government or State Government, the Revenue cannot determine that the manufacture of the branded goods was in a factory located in an urban area so as to disallow the benefit of SSI exemption notification in the light of the Tribunal's decision in Karunya Matha Social Centre v. CCE, Cochin reported in and Katyani Foods & Beverages (P) Ltd v. CCE, Meerut reported in and CCE, Bangalore v. Srijee Foods reported in, 2006 (198) ELT 219 (Tri. Bang). We therefore hold that the benefit of exemption is available to the assessee herein for the reason that Thelliyar Agaram is not an urban area, but a rural area, and set aside the impugned order confirming duty demand and imposition of penalty, and allow the appeal.