The Principal Commissioner of Central GST Versus M/s Maniar And Co.
Central Excise
2018 (5) TMI 1055 – GUJARAT HIGH COURT – 2018 (16) G. S. T. L. 85 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 8-3-2018
Tax Appeal No. 759 of 2017
Central Excise
MR. B.N. KARIA AND MR. B.N. KARIA, JJ.
For The Petitioner : Viral K Shah
For The Respondent : Mr Nirav P Shah
ORAL ORDER
(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)
1. Department has filed this appeal challenging the judgment of CESTAT dated 24.01.2017 raising following questions for our consideration:
“[A] Whether in the facts and circumstances of the case and law, the Hon'ble Tribunal has committed substantial error of law in allowing the Appeal of the Respondent and holding that the value of chassis has to be excluded from the value of aggregate value of clearances for home consumption with respect to the present facts ?
[B] Whether in the facts and circumstances of the case and law, the Hon'ble Tribunal has
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is 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 the department, the assessee would cease to be a SSI unit and would therefore not be able to avail the benefit of exemption notifications specially made available to this class of industries. Consequentially, the question would arise as to what would be the assessee's duty liability and in particular, whether it could avail cenvat credit of the goods so utilized as inputs.
4. Focusing on the first issue, the adjudicating authority as well as the Appellate Commissioner held the issue in favour of the department putting considerable stress on para 2(vii) of notification no.8 of 2003. The Tribunal, in further appeal by the assessee, reversed such decisions and held that the value of chassis cannot be included in the home consumption by the assessee. The Tribunal placed reliance on para 3(b) of
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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 factories, or from a factory by one or more manufacturers, does not exceed rupees three hundred lakhs in the preceding financial year.
As per this condition, the exemption would be available only as long as the aggregate value of clearances of all excisable goods for home consumption by a manufacturer from one or more factories or from a factory by one or more manufactures, does not exceed rupees three hundred lakhs in the preceding financial year. Had this been the only relevant condition, perhaps the adjudicating authority and the Appellate Commissioner were correct in their interpretation. However, paragraph 3 of the notification lays down certain parameters for ascertaining the aggregate value of the clearances for home consumption. Relevant portion of which reads as under:
3. For the
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