ELECTRICITY POLE MANUFACTURING Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE appellant herein is a sub -division of UP State Electricity Board owned and controlled by the UP State Electricity Board constituted under Section 5 of the Electricity Act, 1948. The demand in the present case has been confirmed by clubbing of clearances of other units of UP State Electricity Board, which was not an allegation in the show cause notice, wherein the allegation was that the clearance of the appellants together with the clearances of their fabrication unit, exceeded the ceiling limit prescribed in SSI Exemption Notification No 175/86.

(2.) ON hearing both the sides, we find that the Tribunal has held vide Final Order No. A/135/98 -NB, dated 5 -3 -1998 1999 (109) E.L.T. 595 (Tri.) that the explanation to Notification No. 175/86 itself stipulates that if there is more than one unit maintained by the State Government, then the clearances of that unit alone shall be taken for determining its eligibility to SSI exemption. In Final Order No. 1676/98, dated 2 -11 -1998, the Tribunal has held in the case of the same assessee that the appellant will be eligible for being treated separately for the purpose of computing clearance in terms of Notification No. 1/93 which contains an explanation similar to the explanation No. V and VIII of Notification No. 175/86. The Tribunal has set aside the demand levied upon the appellants. Following the ratio of the above orders, we hold that the appellants herein are entitled to SSI exemption under Notification 175/86 as their clearance value fell below the ceiling limit prescribed in the Notification, set aside the demand and penalty and allow the appeal.