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TMI Blog1985 (10) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... m his two factories at Goa and Hubli during the year 1976-77. 2. This Writ Petition deserves to be dismissed on the sole ground that the petitioner has adequate remedy under the Act. However, since Rule Nisi is issued in the case, the matter is disposed of on its merits and the following order is made. The petitioner is a registered partnership concern, owning two factories, one at Goa and another at Hubli, for the manufacture of R.C.C. cement pipes and other allied products. The production in the Hubli factory started in the year 1960 and in Goa unit in the year 1971. In the Hubli factory the petitioner had employed more than 49 workers, and in Goa, it was less than 49 during the relevant period. 3. The Government of India issued a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or more factories from the whole of the duty of excise leviable thereon, if any officer not below the rank of an Asst. Collector of Central Excise is satisfied that the sum total of the value of the capital investment made from time to time on plant and machinery installed in the Industrial unit in which the goods, under clearance, are manufactured, is not more than rupees ten lakhs: Provided that this exemption shall not be applicable to a manufacturer if the total value of all excisable goods cleared by him or on his behalf in the preceding financial year had exceeded rupees thirty lakhs." 5. After this notification was issued, there was a change in the criterion for granting exemption in respect of the duty on excisable goods levi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ances made from the Hubli factory did not exceed Rs. 30 lakhs during the relevant preceding financial year; and (iii) That therefore the 1st respondent was not right in proposing to club the value of goods cleared by him from both the factories for the purpose of the application of the notification 176/77. Elaborating his contentions, Sri Chander Kumar, learned Counsel for the petitioner, has submitted that having regard to the fact that the goods cleared by the petitioner from its Goa factory had been exempted from payment of excise duty under the Notification 54/75, they were not excisable goods within the meaning of the said term as defined under Section 2(d) of the Central Excises and Salt Act ( Act ). As a consequence, if only th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration before the Supreme Court was : what is the duty leviable on the wires manufactured by the assessee out of steel rods which had already been imported.? Only para 37 in M/s. J.K. Steels case is relevant for this case, wherein reference is made to its decision in Kailash Nath v. State of U.P. (A.I.R. 1957 S.C. 790) in which it was held that the exemption granted in pursuance of a notification issued under the U.P. Sales Tax Act must be considered as having been contained in the parent Act itself. In the decision of Allahabad High Court in E. Septan Co. (P) Ltd. v. Superintendent of Central Excise and Another [(1985 (19) E.L.T.-page 57)] dealing with the definition of excisable goods , their Lordships held on the facts of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder a notification issued by the Government of India in exercise of its power under Rule 8(1) of the Rules. It is, therefore, his submission that though the clearances made from the Goa factory were exempt from duty under Notification No. 54/75, they did not cease to be excisable goods for the purpose of applying the criterion for levy of duty as specified under Notification No. 176/77. In support of this contention Sri Bhat has relied upon the following decisions : (i)Tamil Nadu Handloom Weavers Society v. Asst. Collector of Central Excise, Madras-[197S E.L.T. (J 57)]; (ii) Andhra Pradesh Paper Mills Ltd. v. Asst. Collector of Excise [1980 E.L.T. 210 (A.P.)], and (iii)Vishal Andhra Industries v. Union of India-[19S3 (14) E.L.T. 22 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o effect the purpose of the legislation. For finding out the true scheme of a taxing measure, we have to take into consideration not merely the levy but also the exemptions granted." 10. In the decisions relied upon by Sri Shivashankar Bhat, namely of : (i) Allahabad ; (ii) Andhra Pradesh and (iii) Madras, High Courts their Lordships, on a detailed examination of the definition of excisable goods vis-a-vis the schedule and effect of notifications issued under the Act, have taken a uniform view that even though the excisable goods are exempted from excise duty by virtue of notifications issued by the Central Government, they do not cease to be excisable goods . 11. I am of the opinion that the view expressed in the above said deci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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