ELSON MACHINES (P) LTD. vs COLLECTOR OF CENTRAL EXCISE

The Supreme Court held that under Rule 8(1) of the Central Excise Rules, 1944, the exemption provided by Notification No. 80/80-C.E. is not applicable if the aggregate value of clearances exceeds Rs. 15 lakhs. The Court affirmed the Appellate Tribunal's decision that electric motors used for captive consumption in the manufacture of monoblock pumps could not be excluded from the clearance value, as they fell under different tariff items. The appeal was dismissed, confirming the duty demand for the period in question.