1983 (11) TMI 286 - AT - Central Excise

Summary

Issues: Interpretation of proviso (v) to Exemption Notification No. 226/77-C.E. regarding concessional rate of duty for Drill as defined by the Textile Commissioner under the Cotton Textile (Control) Order, 1948.

Analysis:
1. The case involved a dispute regarding the entitlement of a concession on 4-harness Drill under proviso (v) to Exemption Notification No. 226/77-C.E. The Central Board of Excise and Customs initially held that the respondents were entitled to the concession, but the Central Government issued a show cause notice to revise the decision.

2. The Department argued that the definition of "Drill" under the Textile Control Orders of 1964 and 1968 was intended for price control, and the later Order of 1968 superseded the earlier Order of 1964. They contended that since the definition of "Drill" for which no maximum ex-factory prices had been specified did not exist under the 1968 Order, the respondents were not entitled to the concession.

3. On the other hand, the respondents argued that proviso (v) applied to "Drill" and not "Controlled Drill," emphasizing that the definition of Drill existed under the 1964 Order during the material period. They opposed reading words into the clause that did not exist and highlighted that the Order of 1964 was superseded later in 1979, not during the material period.

4. The Tribunal analyzed the matter and emphasized that any interpretation rendering legislation redundant should be avoided. They found the Department's proposition unacceptable as it would make the proviso meaningless. The Tribunal upheld that the 4-harness Drill met the conditions of proviso (v) by conforming to the 1964 Order's definition of Drill and having no specified maximum ex-factory price, entitling the respondents to the concession. The impugned order was deemed correct, and the show cause notice was discharged.