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Acmefil Engineering Systems Pvt. Ltd. and Others V/S CCE-Ahmedabad-I


Company & Directors' Information:- C P SYSTEMS PVT LTD [Active] CIN = U29199DL1999PTC101718

Company & Directors' Information:- T SYSTEMS INDIA PRIVATE LIMITED [Strike Off] CIN = U72200DL2004PTC127138

Company & Directors' Information:- A K M SYSTEMS PRIVATE LIMITED [Active] CIN = U74899DL1984PTC018546

Company & Directors' Information:- W B M SYSTEMS PRIVATE LIMITED [Active] CIN = U74899DL1984PTC017764

Company & Directors' Information:- A R G SYSTEMS LIMITED [Active] CIN = U74899DL1994PLC062621

Company & Directors' Information:- S SYSTEMS PVT LTD [Active] CIN = U72200DL2001PTC111270

Company & Directors' Information:- SYSTEMS INDIA PRIVATE LIMITED [Active] CIN = U74899DL1994PTC059377

Company & Directors' Information:- V S S SYSTEMS INDIA PRIVATE LIMITED [Strike Off] CIN = U03000TZ1997PTC007933

Company & Directors' Information:- ENGINEERING SYSTEMS PRIVATE LIMITED [Active] CIN = U29100KA1978PTC003271

Company & Directors' Information:- I L SYSTEMS INDIA PRIVATE LIMITED [Strike Off] CIN = U18100GJ1999PTC037104

Company & Directors' Information:- A V SYSTEMS PRIVATE LIMITED [Active] CIN = U31909PN2001PTC015788

Company & Directors' Information:- S P P S SYSTEMS PRIVATE LIMITED [Active] CIN = U72200TG2000PTC033732

Company & Directors' Information:- L S I SYSTEMS (INDIA) PRIVATE LIMITED [Active] CIN = U32109DL2000PTC105666

Company & Directors' Information:- H B S SYSTEMS PRIVATE LIMITED [Active] CIN = U74899DL1992PTC048198

Company & Directors' Information:- R R P ENGINEERING SYSTEMS PRIVATE LIMITED [Active] CIN = U74999HR1987PTC027890

Company & Directors' Information:- U C SYSTEMS INDIA PVT LTD [Active] CIN = U72200DL1997PTC084267

Company & Directors' Information:- ACMEFIL ENGINEERING SYSTEMS PRIVATE LIMITED [Active] CIN = U72200GJ2000PTC038416

Company & Directors' Information:- L C SYSTEMS PRIVATE LIMITED [Active] CIN = U55200PB2012PTC036880

Company & Directors' Information:- C I SYSTEMS PVT LTD [Active] CIN = U45200TG1983PTC003915

Company & Directors' Information:- M J SYSTEMS (INDIA) PRIVATE LIMITED [Active] CIN = U72900MH2005PTC150591

Company & Directors' Information:- R R SYSTEMS PRIVATE LIMITED [Active] CIN = U30007DL1999PTC098142

Company & Directors' Information:- C N C SYSTEMS PVT LTD [Active] CIN = U72900DL1999PTC100476

Company & Directors' Information:- M B M SYSTEMS PRIVATE LIMITED [Active] CIN = U30006DL1988PTC030404

Company & Directors' Information:- M G ENGINEERING SYSTEMS PVT LTD [Active] CIN = U29119GJ1987PTC009550

Company & Directors' Information:- C SYSTEMS PRIVATE LIMITED [Active] CIN = U31103TN2009PTC071155

Company & Directors' Information:- R M I SYSTEMS PRIVATE LIMITED [Active] CIN = U72200KA2011PTC060246

Company & Directors' Information:- W & S SYSTEMS (INDIA) PRIVATE LIMITED [Active] CIN = U74910TN2005PTC055568

Company & Directors' Information:- M. Y. T. SYSTEMS PRIVATE LIMITED [Under Process of Striking Off] CIN = U74990TG2016PTC110104

Company & Directors' Information:- S E I SYSTEMS LIMITED [Strike Off] CIN = L74899DL1994PLC061731

Company & Directors' Information:- D C S SYSTEMS LIMITED [Strike Off] CIN = U72100MP2000PLC014224

Company & Directors' Information:- I T G SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72200DL1999PTC098431

Company & Directors' Information:- I O SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72200TG1998PTC029166

Company & Directors' Information:- S E C O M SYSTEMS PRIVATE LIMITED [Active] CIN = U31909HR2009PTC039084

Company & Directors' Information:- ACMEFIL SYSTEMS PVT LTD [Strike Off] CIN = U35199GJ1995PTC026849

Company & Directors' Information:- D M SYSTEMS PRIVATE LIMITED [Active] CIN = U72100DL1999PTC101817

Company & Directors' Information:- K K K SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72100UP1995PTC017784

Company & Directors' Information:- E-SYSTEMS (INDIA) PRIVATE LIMITED [Active] CIN = U72200WB2003PTC096700

Company & Directors' Information:- J B SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72200KL1997PTC011510

Company & Directors' Information:- M AND S SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72200MH1996PTC103819

Company & Directors' Information:- K AND M SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U32101UP1993PTC015352

Company & Directors' Information:- S S V SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72300TN1996PTC037072

Company & Directors' Information:- R G B SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72300TN1998PTC040485

Company & Directors' Information:- C C SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U31100TG1996PTC023469

Company & Directors' Information:- K R T SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U52392TN2002PTC048704

Company & Directors' Information:- A R SYSTEMS ENGINEERING PRIVATE LIMITED [Active] CIN = U72900JH2012PTC000636

Company & Directors' Information:- N F E W ENGINEERING SYSTEMS PRIVATE LIMITED [Active] CIN = U01401UP1987PTC008797

Company & Directors' Information:- B & D SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72100OR1996PTC004611

Company & Directors' Information:- A M P S SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72900WB2001PTC093281

Company & Directors' Information:- G M E SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U71290DL1987PTC029758

Company & Directors' Information:- R B SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U31300RJ1990PTC005689

Company & Directors' Information:- E D H SYSTEMS PVT. LTD. [Strike Off] CIN = U99999DL1991PTC045384

Company & Directors' Information:- H N G SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72900RJ2012PTC040713

Company & Directors' Information:- F A SYSTEMS PRIVATE LIMITED [Active] CIN = U72100MH2004PTC148941

Company & Directors' Information:- H AND P SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U74900PN2013PTC146918

Company & Directors' Information:- G. K. SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72900PN2006PTC129225

Company & Directors' Information:- T G SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U31403TN2006PTC061859

Company & Directors' Information:- I T SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72400AS1999PTC005824

Company & Directors' Information:- Y Y SYSTEMS PRIVATE LIMITED [Active] CIN = U72200CH2015PTC035767

Company & Directors' Information:- N P M E SYSTEMS PRIVATE LIMITED [Active] CIN = U29299DL1998PTC094645

Company & Directors' Information:- R D SYSTEMS PRIVATE LIMITED [Active] CIN = U72100DL2000PTC103462

Company & Directors' Information:- V C SYSTEMS PVT LTD [Active] CIN = U72200DL2001PTC111812

Company & Directors' Information:- K B N SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U64204DL1997PTC088904

Company & Directors' Information:- A B SYSTEMS PRIVATE LIMITED [Active] CIN = U93000DL2012PTC234774

Company & Directors' Information:- J S N D SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72900GJ2011PTC065160

Company & Directors' Information:- Y R SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72900DL2000PTC105093

Company & Directors' Information:- S R SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72900DL2000PTC104743

Company & Directors' Information:- F C S SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U73100DL1997PTC090517

Company & Directors' Information:- E R SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72200TG2008PTC061904

Company & Directors' Information:- R & T SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U72200DL2008PTC179617

Company & Directors' Information:- Q S Q SYSTEMS PRIVATE LIMITED [Strike Off] CIN = U51109KA2000PTC026269

    Appeal Nos. E/1377 and 1391/2010 (Arising out of OIA-146-147/2010-AHD-I-CE/MM/COMMR-A-/AHD dated 09.06.2010 passed by the Commissioner (Appeals) of Central Excise and Customs, Ahmedabad-I) and Order Nos. A/11245-11246/2018

    Decided On, 20 June 2018

    At, Customs Excise Service Tax Appellate Tribunal West Zonal Bench At Ahmedabad

    By, THE HONORABLE JUSTICE: RAMESH NAIR
    By, MEMBER AND THE HONORABLE JUSTICE: RAJU
    By, MEMBER

    For Petitioner: S.J. Vyas, Advocate And For Respondents: Amit Kumar Mishra, Deputy Commissioner (AR)



Judgment Text


1. The brief facts of the case are that the appellants are availing SSI Exemption Notification No. 8/2003-CE dated 01.03.2003. Revenue denied the SSI Exemption for the financial year 2008-2009 on the ground that in the financial year 2007-2008, the appellant have crossed the threshold aggregate clearance value of Rs. 4 Crores.

2. Shri S.J. Vyas Ld. Counsel appearing on behalf of the appellants submits that during 2007-2008 on 31.03.2007 they have paid the duty of consignment of Spin Flash Dryer on the value of 29,85,000/- which was considered as the clearance upto 31.03.2007 against the total value of Rs. 29,85,000/-. The machine was removed and some of the consignments were cleared after 31.03.2007. It is his submission that since the entire duty was paid on or before 31.03.2007 and consignment of Spin Flash Dryer some part of the machine even though cleared after 31.03.2007 its clearance should be considered in the year 2006-2007. To that extent, the value during the year 2007-2008 will stand reduced then the aggregate value is well within the threshold limit of Rs. 4 Crores. Accordingly, they are entitled for exemption in 2008-2009. Alternatively, he submits that even if entire value is taken as aggregate value during the period 2006-2007, some of the clearances are of bought out parts sold as such that should not be considered as clearance of manufactured goods. Accordingly, its value shall be deducted from the overall aggregate clearance value, which the lower authorities have not considered properly. He further submits that the appellants have declared the details of the entire transaction and payment of excise duty in the Invoice No. 126 dated 31.03.2007, the same has been declared in monthly returns. Therefore, there is no suppression of fact accordingly the penalty under Section 11 AC for the penalty on the Director should not be imposed in absence of any malafide intention.

3. Shri Amit Kumar Mishra Ld. Deputy Commissioner (AR) appearing on behalf of the Revenue reiterated the findings of the impugned order. He submits that even though the duty was paid on or before 31.03.2007, but, it is not in dispute that the parts of the goods were cleared from the factory on or after 01.04.2007. As per the Notification No. 8/2003-CE dated 01.03.2003, it is clear that the value of clearance has to be considered for a particular financial year. Merely, by making payment of excise duty it cannot be considered as clearance of goods on the date of payment of duty. Therefore, the physical clearance made from the factory should be considered as clearance of the goods for the purpose of calculating the aggregate value of Rs. 4 Crores in the financial year. Therefore, the appellants are not eligible for SSI exemption as the aggregate value has crossed Rs. 4 Crores during the period 2007-2008. As regard the submission of removal of parts as such, he pointed out that this aspect has been considered by the Adjudicating Authority. According to which the adjudicating authority has accepted the value of Rs. 9,32,665/- of parts and Rs. 1,19,044/- of export and thereafter held that still the value exceeded Rs. 4 Crores.

4. We have carefully considered the submission made by both sides and perused the records. We find that from the invoice only certain part of the total consignment was cleared on 31.03.2007 vide invoice No. 126 dated 31.03.2007 which is for the value of Rs. 6,15,000/- and this invoice shown to have been issued for the value of 29,85,000/-, but, the clearance of the value over and above Rs. 6,15,000/- were made on or after 01.04.2007. In this fact, we are of the view that merely by making payment of excise duty on 31.03.2007 it cannot be said that the goods on which such duty was paid where the clearances of on or before 31.03.2007. Undisputedly, the physically goods were cleared on or after 01.04.2007, therefore, these clearances should be taken in the year 2007-2008. Accordingly, the aggregate value needs to be calculated. However, the appellants heavily made a submission that there are certain bought out items which were cleared as such, the value of sale of those bought out goods should not be added in the aggregate value of clearance for the purpose of SSI exemption. In this regard, we find that the Adjudicating Authority though given finding in respect of the clearances of 9,32,665/- and 1,19,044/- towards export, but, no specific finding was given in respect of the goods, namely, Spray Dryer valued at Rs. 19,00,000/- cleared vide invoice No. 117 dated 03.03.2008. To ascertain whether this value represent the correct value, it is necessary to find that whether the spray dryer supplied by the appellant is a manufactured goods or it is clearance of bought out goods as such. This aspect needs verification by the adjudicating authority. As regard the submission of the Ld. Counsel regarding the imposition of penalty under Section 11 AC, we find that the appellant have declared payment of duty as on 31.03.2007 in the invoice as well as in the monthly returns. The demand was also raised in the normal period of one year. In these c

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ircumstances, it cannot be said that there is a suppression of fact on the part of the appellants. Accordingly, we are of the view that the penalty under Section 11 AC should not have been imposed. Hence, the same is set-aside. For the same reason, the penalty on Director is also not justified, accordingly the penalty imposed under Rule 26 on the Director is also set-aside. As regard the demand of duty and interest on the appellant company, the matter is remanded back to the adjudicating authority. Appeal No. E/1391/2010 filed by Shri Ravi Gangadhran Nair is allowed.
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