- (1.) This appeal has been filed by the Revenue against the judgment of the Customs, Excise and Gold (Control) Appellate tribunal (hereinafter referred to as "the tribunal") dated 16/10/1987. The only question which falls for consideration in this appeal is whether the respondent-Company is entitled to avail the benefit of the exemption from payment of excise duty under Notification No. 71/78 dated 1/3/1978
(2.) The respondent-Company was manufacturing motor vehicle parts. Some of the parts so manufactured were specified goods covered under Tariff Item 34-A while others were covered under Tariff, Item 68. The clearance of specified goods covered under Tariff Item 34-A by the respondent during the Financial Year 1979-80 was more than Rs 15,00,000. 00 but the aggregate clearance of excisable goods was less than Rs 20,00,000. 00. 9 The exemption granted under Notification No. 71/78 dated 1/3/1978 was not applicable to a manufacturer: "(I) during the Financial Year 1978-79, if the aggregate value of the specified goods cleared, if any, by him or on his behalf, for home consumption, from one or more factories, during the period commencing on the 1st day of April, 1977 and ending on the 28th day of February, 1978 he exceeded Rs 13.75 lakhs; (Ii) during the Financial Year 1978-79, if such clearances, if any, of the specified goods, had exceeded rupees fifteen lakhs; and (Iii) who manufacture excisable goods falling under more than one item number of the said First Schedule and the aggregate value of all of excisable goods cleared by him or on his behalf for home consumption, from one or more factories, during the preceding financial year, had exceeded rupees twenty lakhs. "
(3.) The tribunal was of the view that the respondent-Company was entitled to the benefit of the exemption under Notification No. 71/78 because the goods manufactured by the respondent-Company fall under more than one item and the total production did not exceed Rs 20,00,000. 00. In taking the said view the tribunal has followed the judgment of the Calcutta High court in R. K. Chemical Industries (P) Ltd. v. Supdt. of central Excise.;