1981 (2) TMI 235 - CGOVT - Central Excise

Summary

Issues:
1. Availability of duty concession on clearances of copper wire bars under Notification No. 198/76.
2. Correctness of base clearances fixed by the Assistant Collector.

Detailed Analysis:

Issue 1: Availability of duty concession on clearances of copper wire bars under Notification No. 198/76
The petitioners, primary manufacturers of copper, sought incentive availability for clearances of copper wire bars from 1-7-1976, arguing for retrospective effect of Notification No. 18/77. They contended that like polyurethane foam, where concession under Notification No. 198/76 continued at the product stage, the same should apply to copper wire bars. Additionally, they argued that the base clearance was fixed incorrectly by the Assistant Collector.

At the personal hearing, the petitioners' advocate suggested two alternatives: giving retrospective effect to Notification No. 18/77 or allowing the higher production incentive for copper cathodes used in producing wire bars. The Government found merit in the second alternative due to para 1(b) of Notification No. 198/76, which includes clearances entitled to exemption when used in manufacturing other goods. The Government noted that duty was paid only at the wire bar stage, implying that the concession under Notification No. 198/76 could be availed at the product stage.

Issue 2: Correctness of base clearances fixed by the Assistant Collector
The Assistant Collector incorrectly fixed base clearances for both units under Notification No. 198/76. The Ghatsila Unit's base period was to be fixed under para 2(2)(c) as it started before 1-4-1973, while the Khetri Nagar Unit's base period should have been under para 2(2)(b) as it started after 1-4-1973. The Government directed the original authority to redetermine the base clearance for the petitioners in line with the guidelines provided, setting aside the lower authorities' orders.

In conclusion, the Government found the petitioners' second alternative regarding the availability of the concession at the product stage to be valid. They also directed the redetermination of base clearances for both units, emphasizing the correct application of Notification No. 198/76 provisions.