CHENNAI:
THE respondent assessee is an SSI unit availing the exemption under
Notification No 8/99 CE dated 28.02.1999. They were also manufacturing
goods bearing brand name of Hindustan Lever Ltd on job work basis and
clearing the same on payment of duty. The dispute is with regard to
admissibility of MODVAT Credit on inputs used in the manufacture of
branded goods cleared on payment of duty. The Adjudicating Authority and
the Appellate authority dropped the demand, but on appeal by revenue,
the Tribunal upheld the demand. However, the matter was remanded to the
Tribunal by the High Court on appeal by the assessee.
On hearing both sides, the Tribunal held:
The
issue relates to simultaneous availment of SSI exemption and modvat
credit. The adjudicating authority and the appellate authority have
clearly discussed the issue in detail and held that respondents have
availed exemption on the goods pertaining to assessee whereas they paid
full excise duty on the goods bearing the brand name of "HLL" which are
manufactured on job work basis and allowed the benefit and Revenue
preferred the present appeal. As per Notfn 8/99 as amended for the
purpose of determining the aggregate value of clearances by a
manufacturer, the clearance value of goods bearing the brand name of
other persons are excluded. On the identical issue, in the case of
Nebulae Health Care Ltd. Vs CC Chennai, this Tribunal after taking into
consideration the Supreme Court judgement in the case of Commissioner Vs
Ramesh Food Products and the Tribunal's Larger Bench decision in the
case of Kamani Foods Vs Collector allowed the appeal of the assessee.
The Revenue appeal against this Tribunal order and the Supreme Court in
their order dt. 27.10.2015 in Civil Appeal No.2789/2007 in the case of
CCE Chennai Vs Nebulae Health Care Ltd. - 2015-TIOL-261-SC-CX dismissed
the Revenue appeal and upheld this Tribunal's order. The ratio of the
apex court decision squarely applies to this case wherein the Supreme
Court after distinguishing their own case in the case of Ramesh Foods
upheld this Tribunal's order.
Accordingly, the Tribunal dismissed the revenue's appeal and upheld the order of lower authority.