1987 (8) TMI 343 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification No. 268/67-C.E. and entitlement to exemption.
2. Whether payment of additional duty of Customs under Section 3 of the Customs Tariff Act qualifies for exemption under the notification.

Analysis:

1. The case involved the classification of parts of footwear by M/s. Polyurethene Footwears (P) Ltd. falling under Item 36(2) CET and their claim for exemption under Notification No. 268/67-C.E., dated 1-12-1967 as amended. The dispute arose when the Assistant Collector rejected their claim, which was later overturned by the Collector of Central Excise (Appeals). The issue was whether the words in the notification referring to duty under Item 15-A CET covered only Central Excise Duty or also included payment of additional duty of Customs under Section 3 of the C.T.A.

2. The notification exempted footwear and parts thereof made from artificial or synthetic resins or plastic materials from excise duty, subject to specific conditions. The contention was whether the payment of additional duty of Customs under Item 15-A CET could qualify for the exemption. The department argued that only after the issuance of Notification No. 70/85-C.E., dated 17-3-1985, did such payment entitle for exemption. However, the respondents argued that the benefit was available regardless of whether the duty under Item 15-A CET was paid as excise duty or as additional duty of Customs.

3. The Tribunal analyzed the wording of the notifications and held that the reference to duty in notifications issued under Rule 8 of the Central Excise Rules must be interpreted as Central Excise Duty. Referring to a previous decision in the case of United Metal Industries, the Tribunal upheld that the payment of additional duty of customs under Item 15-A CET did not entitle the appellants to claim exemption under Notification 268 of 1967. Therefore, the Tribunal upheld the impugned order and dismissed the appeal filed by the Collector of Central Excise, Pune.

This detailed analysis clarifies the interpretation of the notifications and the specific conditions for claiming exemption under Central Excise Rules, highlighting the significance of payment types in determining eligibility for duty exemption.