1999 (4) TMI 165 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification No. 178/85 regarding excise duty exemption.
2. Consideration of clearances under Notification No. 46/81-C.E. for calculating benefits under Notification No. 77/85-C.E.

Analysis:
1. The case involved the interpretation of Notification No. 178/85 which provided excise duty exemption subject to conditions, including a limit on clearances. The appellants had exceeded the clearance limit specified in the notification during the preceding financial year. The contention arose whether the clearances made under a previous notification, i.e., Notification No. 46/81-C.E., could be considered for determining the aggregate clearances under Notification No. 178/85. The lower authorities and the Tribunal held that the expression 'for the time being in force' in the latter notification excluded the application of the former notification for calculating clearances. This decision was based on the understanding that the previous notification ceased to be in force when the new notification came into effect, and hence, clearances under the old notification could not be considered.

2. Another aspect of the case revolved around the consideration of clearances under Notification No. 46/81-C.E. for determining benefits under Notification No. 77/85-C.E. The appellants argued that since they were seeking benefits under the latter notification only from a specific date, clearances under the former notification should not be taken into account. However, the Tribunal rejected this argument, stating that the benefits of the new notification could only be invoked from its effective date and not retrospectively. Therefore, the clearances exceeding the limit under Notification No. 77/85-C.E. during the previous financial year made the appellants ineligible for the exemption under that notification.

In conclusion, the Tribunal dismissed the appeal, upholding the findings of the lower authorities that the appellants were not entitled to the benefit of the excise duty exemption under Notification No. 77/85-C.E. from the specified date due to exceeding the clearance limit in the preceding financial year.