1991 (4) TMI 241 - AT - Central Excise

Summary

Issues: Interpretation of Notification 213/86 and availability of benefit under Notification 175/86

Analysis:
The matter initially involved a direction to transfer the case to a Special Bench due to the interpretation of Notification 213/86. The appellant filed a Miscellaneous Application asserting that the issue pertained to the benefit under Notification 175/86, falling within the jurisdiction of the current Bench. Consequently, the order transferring the appeal was recalled, and the case was taken up for disposal.

Issue A: Benefit under Notification 175/86
The appellant contended that they had complied with the requirements of Notification 175/86 by filing necessary documents and obtaining approval. However, the authorities demanded duty for the entire month of March, claiming that Notification 175/86 was not applicable post-Notification 213/86 and the Central Duties of Excise (Retrospective Exemption) Act, 1986. The appellant argued that the suspension of Notification 175/86 was only for a limited period and should not impact its applicability before 25-3-1986. The Tribunal found that the suspension was temporary, and Notification 175/86 had statutory force, requiring compliance if the appellants were eligible.

Issue B: Central Duties of Excise (Retrospective Exemption) Act, 1986
The Department argued that the Act aimed to maintain uniform duty rates during March 1986, preventing confusion caused by Notifications 175/86 and 213/86. They emphasized that Notification 175/86 could not be enforced during March 1986 as it conflicted with the Act's purpose. Referring to the Act's provisions, they contended that the Act deemed notifications issued between March and August 1986 to have always been effective from 1st March 1986.

Conclusion:
After considering both parties' submissions, the Tribunal held that the temporary suspension of Notification 175/86 did not negate its statutory force before 25-3-1986. The Tribunal rejected the Department's argument that the Central Duties of Excise (Retrospective Exemption) Act nullified the applicability of Notification 175/86. Consequently, the demand for duty up to 24-3-1986 was deemed unjustified, and the appellant's appeal was allowed on those grounds.