SURAJMANI ENTERPRISES Vs. COMMISSIONER OF CENTRAL EXCISE, VAPI

JUDGEMENT

(1.) DUTY of Rs. 1,90,799/ - stands confirmed against the appellant along with confirmation of interest and imposition of penalty of identical amount.

(2.) AS per facts on record, appellant is engaged in the manufacture of P and P medicines in their factory situated in rural industrial area. During the relevant period, they were availing the benefit of small scale exemption notification No. 9/2003 -CE dated 1 -3 -2003. The appellants were manufacturing P and P medicines on their own as also under the brand name of other persons. In terms of Para -4 of the said notification, branded goods, if manufactured in a factory located in rural area, are not hit by the said clause, which denies exemption to the branded goods, otherwise manufactured. As such, the appellants were entitled to clear the branded goods free of duty in terms of the said notification. However, they cleared the said goods on payment of duty.

(3.) WHILE computing the aggregate value of clearances in the financial year 2003 -04, for the purposes of ascertaining the exemption criteria for the next year, the appellants total clearances including the clearances of branded goods exceeded Rs. 3 crores. As such, Revenue denied them the benefit of the notification in the next financial year.