1991 (11) TMI 136 - AT - Central Excise

Summary

Issues:
Interpretation of Notification 124/87 dated 29-4-1987 relating to the rate of duty on cement.

Detailed Analysis:

1. Background and Manufacturing Process:
The appellants manufacture cement under sub-heading No. 2502.20 CET, 1985, in their factory at Imlai since 1983. The clinker used for cement production was initially produced in a factory at Narsingarh, which started production in 1982. Subsequently, the appellants set up another clinker plant, Diamond II Plant, which began production in October 1988. The duty was paid at a concessional rate as per Notification 124/87 dated 29-4-1987 for cement manufactured from clinker produced in the first factory.

2. Notification Interpretation:
The Central Government issued Notification 124/87 to provide relief to cement manufacturers who started production after 1982. The notification specified a concessional duty rate of Rs. 195 per metric tonne for cement manufactured from clinker produced within the same factory or another factory of the same manufacturer that commenced production between 1982 and 1986. The appellants argued that the term "aforesaid period" in the notification should only refer to the start date of 1st January 1982, but the Tribunal disagreed, stating that such an interpretation would go against the clear language of the notification.

3. Notification Comparison:
The Tribunal compared Notification 124/87 with Notification 36/87, which provided a different concessional rate for factories starting production after 1st April 1986. The Tribunal emphasized that the language of Notification 124/87 was unambiguous and did not warrant a different interpretation than the one based on the actual production commencement dates of the factories.

4. Decision and Conclusion:
After considering the arguments presented by both parties, the Tribunal upheld the decision of the lower appellate authority, denying the benefit of exemption to cement manufactured from clinker produced in the Diamond II Plant. The Tribunal concluded that the appellants were liable to pay duty at the prescribed rate of Rs. 215 per metric tonne, as the clinker used was produced in a factory that started production well after the period specified in Notification 124/87. The appeal was dismissed, and the impugned order was confirmed.

This detailed analysis provides a comprehensive understanding of the judgment's key issues, the relevant legal provisions, and the Tribunal's reasoning leading to the final decision.