Central Excise - T.I. 68 - Notification No.77/85-C.E., dated 17-3-1985 - Certain clarifications - Regarding - Central Excise - 345/19/86-TRU

Central Excise - T.I. 68 - Notification No.77/85-C.E., dated 17-3-1985 - Certain clarifications - Regarding F. No. 345/19/86-TRU Dated 19-1-1987 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Central Excise - T.I. 68 - Notification No.77/85-C.E., dated 17-3-1985 - Certain clarifications - Regarding. Notification No. 77/85-C.E., dated 17-3-1985 provided for exemption from excise duty for small scale units producing goods falling under Item 68 under the erstwhile Central Excise Tariff. The notification inter alia provided for value limits of clearances of excisable goods both for the purpose of determining the eligibility of a manufacturer for the exemption under the notification and for the purpose of determining the value of clearances entitled for exemption. As per clause (a) of Explanation II to the notification clearances of excisable goods which are exempted from the whole of the duty of excise leviable thereon by any other notification (not being a notification where exemption from the whole of duty of excise leviable thereon is granted based upon, the value or quantity of clearances made in a financial year) issued under sub-rule (1) of rule 8 of the Central Excise Rules 1944 and for the time being in force shall not be taken into account. With reference to the words "for the time being in force" occurring in the said explanation clarifications have been sought for by some Collectors as to whether clearances made under an exemption notification that existed for a part of the financial year and rescinded later should be ignored in terms of explanation II(a) of the notification. 2. The matter has been examined in consultation with the Law Ministry. Explanation II(a) would apply for the purpose of determining both the aggregate value of clearances in the preceding financial year as well as for the purpose of determining the value of clearances in the current financial year. The Ministry of Law have clarified that the meaning of the expression "for the time being in force" must depend upon the context in which the expression occurs. As such any exemption notification which were in force during the relevant preceding financial year would be covered. The intention behind providing for the Explanation to the notification is that a small scale manufacturer can avail of the slab concessions over and above any exemption that may be available under any other notification (not being a notification where exemption from the whole of duty of excise leviable thereon is granted based upon the value or quantity of clearances made in a financial year). Accordingly, it is clarified that all clearances made under such a notification issued under rule 8(1) of the Central Excise Rules may not be taken into account for the purpose of computing the value of clearances under the notification. The fact that a notification is rescinded in the middle of a year would not alter this position.