1987 (1) TMI 359 - AT - Central Excise

Summary

Issues:
The issues involved in this case are the interpretation and applicability of two notifications, namely Notification No. 127/69-C.Ex., dated 29-4-1969 and Notification No. 72/69-C.Ex., dated 1-3-1969, in relation to the assessment of fents of cotton fabrics.

Issue 1: Applicability of Notifications:
The appellants sought assessment based on Notification No. 127/69, which exempts cotton fabrics and blankets up to a certain value, while the lower authorities insisted on applying Notification No. 72/69, specifically for fents. The appellants argued that the benefit of one notification should not be denied by another, citing a previous Tribunal decision. However, the department maintained that Notification No. 72/69 is applicable to fents as it prescribes rates based on weight, unlike Notification No. 127/69 which is based on square meter value.

Issue 2: Interpretation of Notifications:
The Tribunal examined the wording of the notifications and concluded that Notification No. 72/69 specifically addresses fents of cotton fabrics, which align with the goods in question. On the other hand, Notification No. 127/69 pertains to cotton fabrics and blankets, indicating a distinction in the method of determining value for assessment. The Tribunal held that in cases where specific rates for fents are provided, such as in Notification No. 72/69, it takes precedence over a general exemption for cotton fabrics like in Notification No. 127/69.

Separate Judgment by G. Sankaran, Vice President:
In a separate judgment, G. Sankaran disagreed with the conclusion of the majority and emphasized that fents, being cut pieces of cotton fabrics, fall under both notifications as long as their value per square meter does not exceed the specified limit. He highlighted the importance of considering evidence provided by the appellants regarding the value of the fents and proposed allowing the appeal, setting aside the lower authorities' orders, and remanding the matter for a reassessment based on Notification No. 127/69.

In conclusion, the majority opinion upheld the decision to reject the appeal based on the specific applicability of Notification No. 72/69 to fents of cotton fabrics. However, the separate judgment by G. Sankaran advocated for a reassessment under Notification No. 127/69, emphasizing the need to consider the value of the fents in determining the duty liability.