2000 (2) TMI 402 - AT - Central Excise

Summary

Issues Involved:
Whether the value of goods exported to Nepal under Bond is includible in the aggregate value of clearance for the purpose of Notification No. 3/93-C.E., dated 28-2-1993.

Analysis:
The appeal was filed by M/s. Unitherm Inductoweld (India) Pvt. Ltd to determine if the value of goods exported to Nepal under Bond should be considered in the aggregate value of clearance for the purpose of Notification No. 3/93-C.E., dated 28-2-1993. The Appellant's representative argued that the Notification aims to identify eligible units and specify the value of clearances for concessional rates, emphasizing that the word "purpose" in Explanation V indicates this intent. Reference was made to other Notifications to support this interpretation. Additionally, the Advocate cited a previous judgment highlighting the principle of construing notifications in favor of the subject when multiple interpretations are possible.

The Respondent's representative countered by asserting that Explanation V clearly states that clearances for home consumption include exports to Bhutan or Nepal for the purpose of the Notification. The Commissioner (Appeals) findings were reiterated to support this position.

Upon considering both arguments, the Tribunal examined the Central Government's exemption under Notification No. 1/93-C.E., providing relief from duty for goods cleared for home consumption up to a specified value. Explanation V explicitly states that clearances for home consumption include exports to Bhutan or Nepal. The Tribunal emphasized that the language of Explanation V unambiguously requires the inclusion of goods exported to Bhutan or Nepal in calculating the value of clearances for home consumption. The Tribunal found no indication in the notification that Explanation V was solely for identifying eligible units for concession. Therefore, the Tribunal upheld the impugned order, rejecting the appeal filed by the Appellants.

In conclusion, the Tribunal affirmed that the value of goods exported to Nepal under Bond must be included in the computation of clearances for home consumption as per Explanation V of Notification No. 1/93-C.E. The decision was based on the clear language of the Explanation, which mandates such inclusion without ambiguity, leading to the dismissal of the appeal.