1984 (3) TMI 396 - AT - Central Excise

Summary

Issues:
1. Entitlement to exemption under specific notifications.
2. Maintainability of reference application to the High Court.

Entitlement to Exemption:
The judgment addressed the appellant's claim for exemption under certain notifications related to the Central Excise Tariff. The Bench ruled that the appellants were not entitled to clear their goods free of duty under the exemption notifications mentioned. The appellants' arguments regarding clearances from pre-Budget stocks or goods made without power were deemed untenable. The Bench found the appellants guilty of suppression of facts and deliberate concealment, leading to the imposition of duty, penalty, and fine. However, the appellants were granted clearance for nickel scrap valued at a specific amount free of duty.

Maintainability of Reference Application:
The central issue revolved around whether the appellants were entitled to exemption under the notifications. Section 35G of the Central Excises and Salt Act was cited, stating that no reference lay to the High Court concerning matters related to the rate of excise duty or goods' value for assessment purposes. The appellants argued that their reference application was maintainable, contending that questions regarding rates of duty did not involve tariff classification and that issues of pre-Budget stocks or goods made without power were factual, not related to the rate of duty. The Department's representative cited a Supreme Court case and Tribunal orders to support the argument that all points raised by the appellants were connected to the rate of duty. The Bench rejected the reference application, emphasizing that exemption notifications impact the rate of duty by providing concessions, thus constituting a question related to the rate of duty for assessment purposes. The appellants' eligibility for exemption hinged on meeting specified conditions, ultimately linking back to the question of entitlement to a nil or concessional duty rate under the notifications.

In conclusion, the judgment clarified the appellants' lack of entitlement to exemption under specific notifications and addressed the maintainability of their reference application to the High Court, ultimately rejecting the application due to its direct relation to the rate of excise duty and assessment of goods' value.