9911796707
TMI Blog1987 (4) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Central Excise Rules, 1944, the Central Government hereby exempts tyres and tubes excluding flaps, falling under Item Numbers 16(1) and 16(3) of the First Schedule to the Central Excises Salt Act, 1944 (1 of 1944) hereinafter referred to as the specified goods), from so much of the duty of excise leviable thereon (read with any relevant notification issued under the said sub-Rule(1) of Rule 8 and in force for the time being) as is in excess of :- (a) eighty seven and half per cent, of such duty, if produced in any factory which commenced production of the specified goods for the first time earlier than the 1st day of April 1976; and (b) seventy-five per cent of such duty, if produced in any factory which commenced production of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod commencing on the 1st day of April 1978 and ending with the day preceeding the date of publication of this notification in the Official Gazette shall also be taken into account. 2. This notification shall remain in force upto and inclusive of the 31st day of March 1979." 3. In terms of the above notification the appellant company were availing of concession to the extent of 12.5% of duty leviable. The licensed capacity in respect of inner tubes manufactured by appellants was 5 lacs, as certified by the D.G.T.D. and the installed capacity was 5 lacs. As per condition in notification No. 142/78 the exemption was restricted to 75% of the licensed capacity for the year 1978-79. The appellants came up before the department claiming that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acs for the financial year 1979-80. 5. Shri Sachar, JDR strongly supports the view taken by the lower authority. 6. We have carefully considered the facts of the case and the submissions made before us. We have seen the various press notes issued by the Ministry of Industrial Development which have been filed by the appellants. These relate to Government s decision to permit industrial undertaking to increase production upto 25% of their capacity for which they have been licensed or registered without further license, subject to certain conditions. This liberalisation certainly does not affect the operation of the above cited notification under which exemption from Central Excise duty has been given with reference to licensed or insta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of March 1980" shall be substituted." It would be seen from the above that notification 152/79 make some specific amendments in notification No. 142/78. Subject to those amendments the earlier notification stands. So far as the year 1979-80 is concerned, para l.b. of notification 142/78 remains in force without amendment and exemption has to be restricted to 75% of the licensed capacity for the year 1978-79. The view that in respect of the year 1979-80 there was no separate stipulation as regards restriction of exemption to clearance of specified goods for home consumption not exceeding 75% of the licensed capacity for the financial year 1978-79, is also wholly untenable, and has to be rejected. Appeal dismissed. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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