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TMI Blog1989 (2) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... on under Notification No. 80/80-C.E. in respect of the goods specified in the Notification. In the impugned order, the Collector (Appeals) has stated that the Notification No. 80/80-C.E. provides for duty free clearance of specified goods upto the value of Rs. 5 lacs and thereafter on concession upto 25%, if the total clearances of the specified goods in the preceding financial year did not exceed Rs. 15 lakhs and total clearances of all excisable goods during the previous financial year did not exceed Rs. 20 lakhs. He has observed that Explanation V to the Notification laid down the method of computation of aggregate clearance value and according to this Explanation, clearances of any specified goods which are totally exempt by any other n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rgued that the decisions of High Courts are binding on the Tribunal. He has cited the decisions of Supreme Court reported in 1983 (13) E.L.T. 1342 (S.C.) and Tribunal s decision reported in 1988 (35) E.L.T. 398 (CEGAT) in support of binding effect of High Court judgment. 3. Shri Durghayya has argued that Thinner falling under Tariff Item 68, but exempted by Notification is excisable goods and hence, the value thereof has been correctly included in the computation of clearances of all excisable goods during the previous financial year. In support of his argument, he has cited the decision of this Tribunal reported in 1987 (31) E.L.T. 541 (Tribunal) in the case of Techno Chemical Industries v. Collector of Central Excise, Cochin, decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Another, 1978 (2) E.L.T. (J 57) (Madras) in the case of Co-operative Society Ltd. v. Assistant Collector of Central Excise, Erode and 1980 (6) E.L.T. 210 (A.P.) in the case of Andhra Pradesh Paper Mills Ltd., Rajahmundry v. Assistant Collector of Central Excise, Rajahmundry and Another respectively, have held that excisable goods do not become non-excisable goods after exemption by notification. These four High Courts have decided that such goods continue to be excisable goods after being fully exempted by notification. In the case of Techno Chemical Industries v. Collector of Central Excise, Cochin, reported in 1987 (31) E.L.T. 541 (Tribunal), this Tribunal considered various judgments of High Courts and has held that excisable goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation . Relying upon this judgment of the Delhi High Court a Division Bench of the Allahabad High Court also took the similar view in the case of Nagrath Paints Pvt. Ltd. v. U. O.I. decided on 5-12-1977 and reported in 1988 (33) E.L.T. 58. The High Courts of Patna and Madhya Pradesh also took the similar view in the case of Shri Madhav Mill Pvt. Ltd. v. Collector of Central Excise, 1984 (17) E.L.T. 310 (Patna) and Tata Export Limited v. U.O.L, 1985 (22) E.L.T. 732 (M.P.) respectively. 8. However, it deserves to be noticed that the Delhi High Court itself over-ruled its earlier decision rendered in the case of Sulekh Ram and Sons v. U.O.I in its subsequent decision rendered in the case of Vishal Andhra Industries v. U.O.I., 1983 (14) E.L. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d thereunder, particularly Rule 9A, reveals that while the taxable event is the fact of manufacture or production of an excisable article, the payment of duty is related to the date of removal of such article from the factory. In that case the Division Bench also noticed the case of Kirloskar Brothers Ltd. v. U.O.I., 1978 (2) E.L.T. (J 33) decided by the Madhya Pradesh High Court wherein it was held that goods manufactured during the exempted period cannot be taxed even if removed after the exemption is withdrawn. And after so noticing the Division Bench observed as follows ......... With respect, the High Court thinks that the moment there comes into existence an excisable article, the point of time for levy and collection of duty gets fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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