2001 (3) TMI 585 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification No. 1/93 and subsequent amendments regarding duty exemption for specified goods.
2. Determination of the value of clearances for the purpose of availing duty-free benefits under the notification.
3. Applicability of the notification to clearances made before opting for the benefit of exemption.
4. Legal sanction for aggregating the value of clearances made earlier for payment of full duty towards the aggregate value of clearances for exemption purposes.

Issue 1: Interpretation of Notification No. 1/93 and subsequent amendments
The case involved the interpretation of Notification No. 1/93 and its subsequent amendment by Notification No. 90/94, which provided duty exemption for specified goods. The Assistant Commissioner initially held that the exemption only applied to the first clearance of specified goods up to a value of Rs. 30 lakhs made by the assessee in a financial year. This interpretation led to a demand for duty payment from the Respondents for clearances made before July 1994.

Issue 2: Determination of the value of clearances for duty-free benefits
The Commissioner (Appeals) relied on previous Tribunal decisions to determine that the value of clearances made on payment of duty before a certain date should not be included when calculating the aggregate value of clearances for availing the duty-free benefit under the notification. The Commissioner allowed the appeal based on this interpretation, stating that the benefit of duty-free clearance would be available to the appellants from July 1994 when they started availing the notification.

Issue 3: Applicability of the notification to clearances made before opting for exemption
The Revenue contended that clearances made before the amendment date had to be counted towards the total clearance value for availing the exemption. However, the Respondents argued, based on Tribunal decisions, that clearances made before opting for the benefit of the notification should not be aggregated for exemption purposes. They cited legal precedents to support their position.

Issue 4: Legal sanction for aggregating clearances for exemption purposes
The Respondents' consultant relied on Tribunal decisions to argue that clearances made before opting for the benefit of the notification should not be aggregated for exemption purposes. The Tribunal upheld the Commissioner (Appeals) decision, stating that clearances of unspecified goods before the amendment date cannot be considered as first clearances of specified goods. The Tribunal emphasized that the notification exempts specified goods cleared for home consumption on or before 1st April in any financial year, up to an aggregate value not exceeding Rs. 30 lakhs. Therefore, they rejected the Revenue's appeal, upholding the order passed by the Commissioner (Appeals).