1976 (2) TMI 41 - HC - Central Excise

Summary

Issues:
Challenge to Central Excise authorities' orders rejecting concession claim under Notification No. 163/65-C.E. and Notification No. 135/67-C.E.

Analysis:
The petitioners, licensed manufacturers of paper, challenged orders rejecting concession claims for duty under Notification No. 163/65-C.E. and Notification No. 135/67-C.E. The petitioners manufactured corrugated boards assessed to excise duty at a concessional rate of 7 paise per kilogramme under Notification No. 135/67-C.E. The Assistant Collector rejected their claim citing the specific duty rate prescribed by this notification. The Collector upheld this decision, emphasizing that the concession under Notification No. 163/65-C.E. did not apply to corrugated boards. The Central Government also dismissed the revision application, stating that the 7 paise rate in Notification No. 135/67-C.E. stood independently of the earlier notification. The petitioners contended that they were entitled to both concessions granted under the notifications, citing relevant provisions.

The High Court analyzed the notifications and relevant legal principles. They noted that the exemption under Notification No. 163/65-C.E. was to be calculated based on the duty leviable at the time of collection, considering all notifications in force. The court disagreed with the Central Excise authorities' interpretation, emphasizing that future notifications should be considered for granting exemptions. They referenced a decision by the Madhya Pradesh High Court to support this interpretation. The court held that the petitioners were entitled to both concessions as claimed, setting aside the authorities' orders.

The respondents argued that the court should not interfere in factual findings and should consider Notification No. 208/67. However, the court found no relevance of the latter notification to the case. Ultimately, the court allowed the petitions, making the rules absolute and not awarding costs. The judgment favored the petitioners, upholding their entitlement to the concessions granted under the notifications and overturning the authorities' decisions.