Brijesh Kumar ORDER
B.N. Kirpal, J.
1. The respondent herein at his printing press manufactures playing cards as well as printed cartons. Playing cards fall under Tariff Item 56 of the Tariff Act, while printed cartons fall under Tariff Item 68. The question for consideration in this appeal is whether for the purpose of levy of excise duty on the manufacture of printed cards the respondent can be regarded as a small scale industry or not. The answer to that question depends on whether the value of the printed cartons can be taken into consideration even though by Notification No. 89/79 levy of excise duty on manufacture of printed cartons was exempted.
2. The excise authorities came to the conclusion that taking into consideration the aggregate value of the goods cleared, i.e., playing cards plus printed cartons the respondent could not be regarded as a small scale industry. This was so stated even in the show cause notice which was issued to the respondent and it was clearly mentioned therein that in the preceding financial year, that is to say, 1979-80, the turnover of the respondent had exceeded Rs. 20 lakhs.
3. The decision of the excise authorities was challenged by way of a writ petition filed by the respondent. The Single Judge as well as the Division Bench were of the opinion that the respondent was entitled to the benefit of Notification No. 80/80 dated 19.6.1980 and in respect of the playing cards no excise duty would be payable because the aggregate value of the clearances of the playing cards was less than Rs. 20 lakhs as, in the opinion of the High Court, the clearances in respect of printed cartons could not be taken into consideration. Hence, this appeal.
4. The aforesaid Notification dated 19.6.1980 mentions that excisable goods of the description specified in column (3) of the Table annexed thereto, which excisable goods are referred to as 'specified goods', are exempted from levy of excise duty when cleared for home consumption subject to the conditions mentioned in the said Notification. This Notification will not apply in the cases falling under clause (2) thereof which reads as follows:
"2. Nothing contained in this notification shall apply to a manufacturer -
(i) if the aggregate value of clearances of the specified goods, if any, by him or on his behalf, for home consumption, from one or more factories, during the preceding financial year, had exceeded rupees fifteen lakhs;
(ii) who manufacturers excisable goods falling under more than one Item Number of the said First Schedule and the aggregate value of clearances of all excisable goods by him or on his behalf for home consumption, from one or more factories, during the preceding financial year, had exceeded rupees twenty lakhs."
5. On facts, there is no dispute that in the previous year 1979-80 the clearance in respect of playing cards was Rs.14,11,467.35 while in respect of printed cartons the figure came to Rs.10,93,846.04. As has already been noticed, no excise duty was payable on this value of Rs.10,93,846.04 in view of the Exemption Notification No. 89/79.
6. The High Court appears to have overlooked the fact the clause (2) of the Notification dated 19.6.1980 denies the benefit of the said Notification to a manufacturer whose excisable goods falling under more than one item exceed Rs. 20 lakhs. This Court in Collector of Central Excise, Hyderabad........