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TMI Blog1986 (10) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... y the appellants in the preceding year i.e., 1980-81,were more than 20 lakhs. The Assistant Collector held that for the purpose of notification No. 80/80 amended by the notification No. 73/81, the aggregate value of the clearances during the preceding year 1980-81 should be reckoned after taking into account the goods falling under item No.. 68 even though exempted under various notifications. The appellants were manufacturing soap and P or P Foods and other items falling under item 68 apart from the spice powders which are exempted. The aggregate value of the goods cleared by them during 1980-81, other than the spice powders, was Rs. 19,73,254.85. The value of the spice powders cleared was Rs. 2,30,436.83. The appellants plea is that once ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. She cited a reported case in support of her plea : 1983 E.L.T. 2265 (Delhi) High Court : Vishal Andhra Industries v. Union of India. She drew our attention to the observations of the Hon ble Judges as under : Excisable goods is defined to mean goods specified in the 1st Schedule to the Central Excises Act as being subject to excise duty and Rule 8 of the Central Excise Rules permits exemption from payment of the whole or any part of duty leviable on such goods. Therefore if exemption was given on payment of full or part of duty it cannot be said that the goods in question have ceased to be excisable goods. The contention that by issue of exemption notification under Rule 8 the goods should be . treated to have been taken out of the F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , as the case may be, whatever be the quantum of such turnover in a year : Provided that a dealer (other than a casual trader or agent of a non-resident dealer) purchasing goods (the sale of which is liable to tax under sub-section (1) of Section (3) shall not be liable to pay tax under this sub-section, if his total turnover for a year is less than twenty-five thousand rupees ..... The Hon ble Court was examining the levy of purchase tax under this section in respect of goods on which no tax was payable under Section 3, 4 or 5, as the case may be, of the TNGSA 1959. The Hon ble Court observed that Section 7-A contains the following ingredients : (1) The person who purchases the goods is a dealer; (2) The purchase is made by him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated but distinct concepts which may conveniently be described as taxable person , taxable goods and taxable event . All the three must be satisfied before a person can be saddled with liability under the Act. Nevertheless, the distinction between them, if overlooked, may lead to serious error in the construction and application of the Act. While analysing the issue in the context of this Section, the Court made the following observations : The words, the sale or purchase of which is liable to fax under the Act qualify the term goods and exclude by necessary implication goods, the sale or purchase of which is totally exempted from tax at all points under Section 8 or Section 17(1) of the Act. The goods so exempted - not being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of Hon ble Supreme Court is distinguishable from the facts of this case and the ratio of the decision cannot be applied to interpreting the general words excisable goods used in the Central Excise law. In this context Hon ble High Court of Karnataka in the case of Karnataka Cement Pipe Factory Industrial Estate v. Superintendent of Central Excise and Another : 1986 (23) E.L.T. 313 (Karnataka) have examined the scope of the term excisable goods and after taking into account the definition of excisable goods and scope of exemption as given under Rule 8(1) of the Rules have clearly held that excisable goods do not become non-excisable merely by reason of exemption given under a notification and that excisable goods get exemption from pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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