9911796707
TMI Blog1991 (7) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... duty exemption under Notification No. 40/85 and 175/86. Demands were raised, subsequently, by the Department by a show cause notice dated 22-9-1986 alleging that the appellants had removed carbon dioxide by availing the benefit of Notification 40/85 and 175/86 without paying duty which was not in conform ity with the conditions of the Notification 235/85, according to which carbon dioxide manufactured from the impure carbon dioxide must be cleared on payment of ap propriate duty of Central Excise whether in whole or in part under Section 3 of the Central Excises and Salt Act, 1944. The Assistant Collector confirmed the demand for Rs. 7,12,546.00 holding that the conditions under which impure carbon dioxide had been obtained duty-free, had n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lants are eligible for availing of the Rule 56B Procedure. Meanwhile since the facility had been withdrawn and with the issue of Notification 235/85, which itself was in response to representation made by the industry, the appellants complied with Chapter X Procedure and opted for the exemption under Notification 235/85. The Ld. Counsel, vehemently, urged that in such a factual background, if the Department seeks to deny now, the exemption under Notification 235/85 to the appellants, then the justice and fairness will demand that the benefit of Rule 56B Procedure should be extended to the appellants even for the impugned period. Arguing further, the Ld. Counsel relied upon the decision of the Tribunal in the case of I.E.L. Ltd. v. Collector ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Roy, Ld. S.D.R. appearing for the Department contended that the question, here, is on recovery of duty on the impure carbon dioxide which had been cleared without payment of duty under Notification 235/85, but which had been purified and the final product cleared again under exemption. The condition in the Notification that the final product manufactured therefrom should pay duty in whole or in part under Section 3 of the Central Excises Salt Act, 1944, is a clear condition in the Notification. So long as this is not fulfilled, the duty has to be recovered. The intention and the lan guage of the Notification to this effect is very clear and unambiguous, calling for no need to go into the interpretation of the words in the Notification. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te duty of excise leviable, whether in whole or in part under Section 3 of the said Act. The explanatory memorandum was also issued to the Notification in Ministry s F. No. 105/7/85-CX. 3 : Notification No. 235/85-Central Excises dated 15th November, 1985 seeks to provide full exemption from excise duty on carbon dioxide not conforming to ISI specifications, falling under Item No. 14H of the First Schedule of Central Excises Salt Act, 1944, produced in a factory or a distillery and intended to be supplied for use in a bottling plant for the manufacture of carbon dioxide conforming to I.S.I, specifications on which the duty of excise is paid before its removal from the bottling plant . A reading of the text of the Notification as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of issue of Notification itself, has made the intention clear that the final purified carbon dioxide, manufactured out of impure carbon dioxide, for which the exemption is given, must have paid duty before removal from the bottling plant. The intention is also clear and couched in unambiguous terms. Therefore, in such a view of the matter, the stand of the lower authority that duty is recoverable on that quantity of impure carbon dioxide, has a lot of force and is upheld. An alternate plea has also been made that there is another Notification 40/85 dated 17-3-1985 which will also be available to the appellants. Sl. No. 4 of the table to the Notification is relevant for this purpose 4. (4) Carbonic Acid (ii) If- (Carbon Dio ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
