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TMI Blog1986 (5) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... 89/79 CE dated 1-3-1979 the appellants filed a claim on 26-9-1979 for refund of Rs. 11,886.83 and the same was allowed by the Assistant Collector. The Collector of Central Excise, Madras was of the view that in respect of goods which were not exempt from duty under TI 68 CET the appellants had paid duty properly during the period 1-4-1979 to 12-9-1979, and that the refund thereof was not justified in terms of Explanation V to the notification which was inserted in the Notification under amendment Notification No. 228 of 1979 dated 17-7-1979. Accordingly on 17-7-1980 he issued a show cause notice under Section 35A of the Central Excises and Salt Act. The appellants replied justifying the refund already ordered. On adjudication, the Collector ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xplanation V to the Notification No. 228/79 dated 17-7-1979. The same read as follows : For the purpose of computing the value of clearances under this Notification, the clearances of the said goods, which are exempted from the whole of the duty of excise leviable thereon by any other notification issued under sub-rule (1) of Rule 8 of the aforesaid Rules and for the time being in force, shall not be taken into account . The conclusion of the Collector in his order in review (and which is the contention for the department before us also) is that it is only from the date of insertion of this Explanation that the value of clearances of excisable goods falling under TI 68 (and exempted) are to be excluded in computing the value of clearan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have had retrospective effect in so far as the second purpose is concerned, (for the purpose of conferring duty exemption) unless expressly so stated. If that be so, there is no reason to suppose that for the first purpose, the said explanation V has to be given retrospective effect, by a process of interpretation. In this view of the matter, the Collector s action in aggregating the value of dutiable goods cleared during the preceding financial year (1978-79) of the value of Rs. 14,42,860.81 and fully exempted goods of the value of Rs. 17,22,977.56 and, on the basis of the aggregate value of clearances of Rs. 31,65,838.37 during the year 1978-79, denying the benefit of duty relief, in terms of the notification, to goods cleared during 1-4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t it excluded by necessary implication goods the sale or purchase of which is totally exempted at all points under Section 8 or Section 17(1) of the Act. The goods so exempted - not being taxable goods - cannot be brought to charge under Section 7A. This decision is in the context of the Sales Tax law. But we have, on the other hand, the Supreme Court s judgment - Healthways Dairy Products Co. v. Union of India [AIR-1976-SC-2271 = 1978-E.L.T.-J457] wherein the Court observed that if any goods specified in the Central Excise Tariff Schedule are exempted from the levy of excise duty by the Central Government by Rule 8(1) notification, it cannot affect the provision which reguires licence to be taken out for the manufacture of the said goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out therein that out of a sum of Rs. 14,42,866.81 as the value of the other goods (as accepted by the Collector) a sum of Rs. 13,72,338.24 would have related to tiles (falling under item 68) exempt under Explanation to Notification 165/76. We observe that even if this is true that would not have any hearing on the result of the review proceedings. Even if these tiles were exempted goods, the value of clearance thereof could not be excluded till 17-7-1979 in computing the value of the clearances in the preceding year. In this view no relief could have been granted to the appellants in the application for rectification presented by them. We are, therefore, of the view that the order of the Collector would not merit interference even on the b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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