Syed Shah Mohammed Quadri, J. - (1.) The Revenue is in appeal, against the common order of the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi (for short, the Tribunal) in Appeal Nos. E/2114/91-B and E/3349/91-B, filed by the assessees, dated 6th December, 1993.
(2.) For appreciating the question raised in these appeals, it will suffice to refer to the facts in the case of M/s Universal Electrical Industries, the assessee. The assessee manufactures electric toasters, room heaters, electric fans etc. It is a small scale industry claiming benefit of Notification No. 175/1986-C.E. dated 1st March, 1986 (for short, the notification). The assessee has been clearing the goods under the notification, both the inputs as well as the finished goods. On August 6, 1990, a show-cause notice was issued to the assessee calling upon it to explain as to why the benefit of the said notification should not be denied to it. After considering the reply filed by the assessee, the jurisdictional Collector took the view that Explanation III to the notification would be attracted only when the inputs as well as the finished goods are cleared under the notification and as the finished goods were granted exemption under other notifications, he confirmed the demand of duty of Rs. 1.88 lakhs. On appeal by the assessee, the Tribunal allowed the appeal, by majority, by the order impunged in these appeals.
(3.) Mr. Anoop G. Chaudhary, learned senior counsel appearing for the Revenue, vehemently contends that Explanation III can be invoked only if the finished goods are cleared under the notification and inasmuch as the finished goods are exempted under a different notification and would be deemed to be cleared under that notification, the assessee cannot get the benefit of Explanation III to the notification.;