2018 (5) TMI 1055 – GUJARAT HIGH COURT – 2018 (16) G. S. T. L. 85 (Guj.) – Valuation – SSI Exemption – Determination of turnover – whether the value of chassis which the respondent assessee uses for fitting bodies upon manufactured vehicles should be included for ascertaining the assessee's value of aggregate clearances for the purpose of exemption as a Small Scale Industrial unit?
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Held that: – When one is ascertaining the aggregate value of clearances of all excisable goods for home consumption for the purpose of clause( vii) of para 2 of the said notification, in terms of clause( b) of para 3 thereof, the value of clearances of specified goods which are used as inputs for further manufacture of any specified goods within the factory of production would be excluded – the Tribunal is correct in coming to the conclusion that the value of chassis would not be included in the aggregate value of the clearances of the assessee of all excisable goods for home consumption – appeal dism
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whether the value of chassis which the respondent assessee uses for fitting bodies upon manufactured vehicles should be included for ascertaining the assessee's value of aggregate clearances for the purpose of exemption as a Small Scale Industrial unit. 3. Briefly stated, the facts are that the respondent assessee is in the business of manufacturing the various specified and special kinds of bodies which are fitted on the chassis procured from the market. Assessee thereafter manufactures utility equipments for Municipal Corporations, PWD, Fire department and also automobile bodies. In the process, assessee receives duty paid chassis from customers, on which, it fits manufactured or fabricated bodies before clearance of the goods. The department holds the belief that the value of the chassis so used should be included for ascertaining the assessee's home clearances to judge its SSI status. The second issue is consequential. If the answer of the first question is in favour of th
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s to read the above two provisions of the notification no.8 of 2003 conjointly. Notification no.8 of 2003 is at exemption notification issued by the Central Government in exercising of powers under subsection (1) of section 5A of the Central Excise Act. It supersedes earlier similar exemption notification No.6 of 2002. The notification exempts the eligible assessees from payment of entire duty of excise specified in the first schedule of the Central Excise Tariff Act that is the basic duty of excise as well as the special duty of the excise specified in the second schedule of the Act. Para 2 of the notification lays down the condition subject to which such exemption would be available. Clause( vii) thereof which is relevant for our purpose reads as under: 2. The exemption contained in this notification shall apply subject to the following conditions, namely :… (vii) the aggregate value of clearances of all excisable goods for home consumption by a manufacturer from one or more f
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e used as inputs for further manufacture of any specified goods within the factory of production of the specified goods; Thus, this para clearly provides that for the purpose of determining the aggregate value for home consumption clearances of the specified goods which are used as inputs for further manufacture of any specified goods within the factory of production of the specified goods shall not be taken into account. When therefore one is ascertaining the aggregate value of clearances of all excisable goods for home consumption for the purpose of clause( vii) of para 2 of the said notification, in terms of clause( b) of para 3 thereof, the value of clearances of specified goods which are used as inputs for further manufacture of any specified goods within the factory of production would be excluded. It is not in dispute that the chassis and the final product that is the completed motor vehicle which the assessee clears are both specified goods. In that view of the matter, the Trib
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