9911796707
TMI Blog1994 (6) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... declared on each package of cigarettes (exclusive of local taxes) only (vide Notification No. 211/83, dated 4-8-1983). 3. Anticipating a change in rate of duty in the Budget for 1984, the appellants were confronted with the problem that it normally takes the cigarette industry 10 to 20 days after the Union Budget to finalise its new prices of cigarettes upon the change in the rates of duties. This would mean that the cigarette manufacturer would not be in a position to decide what prices would have to be declared on each package of cigarettes manufactured on or after 29-2-1984 (i.e. the date of presentation before Parliament of the Union Budget for 1984) until such time as the prices had been finalised by them. Since this was a problem be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s manufactured during the interim period until the prices were fixed, and cleared after the fixation of such prices, from the factory. The appellant s representation also described the mechanics by which the above proposal could be implemented in relation to the various types of packing used by the cigarette industry. The appellants thereafter received supplementary instructions from the Collector of Central Excise, Hyderabad, vide his Order C. No. V/4-II(2)/30/4-84 MP, dated 24-2-1984 (page No. 39 of the paper book) prescribing the procedure to be followed for marking the prices on stocks of cigarettes manufactured, for a period of a fortnight from the date when the Budget proposals for the Finance Bill, 1984 were to be presented in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2th March, 1984. In respect of all such clearances of stocks on and from 12th March, 1984, were applicable, in accordance with the Collector s supplementary instructions, stickers carrying the inscription stocks cleared under permission dated 24-2-1984 of the Collector of Central Excise, Hyderabad, at Max Price . . . . per packet. LT extra (sample sticker on page No. 39 of paper book) were affixed on cartons/outers and all the necessary clearance documents were counter-signed by the proper Central Excise Officials, and the appropriate rates of duties were paid as required under the Finance Bill, 1984, based on the revised prices declared and approved on 9th March, 1984 by the Asstt. Collector of Central Excise in respect of the entire sto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he procedure agreed upon and there was no cause for demand of duty at the tariff rate in any eventuality; the breach, if any, was of a very minor and technical nature which does not warrant denial of the benefit of the Notification and levy of duty at the tariff rate. 7. In support of his contentions, the learned Counsel drew the attention to letter of the Chairman of M/s. V.S.T. Industries Ltd. addressed to Collector, Hyderabad dated 20-2-1984 and the reply of the Additional Collector dated 24-2-1984 indicating the facility granted. He also drew attention to the specimen sticker (reproduced below the endorsement in the above letter). 8. Learned DR stated that the benefit of exemption notification could be granted to the appellants only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proval thereof. 12. We have considered the above submissions. We observe that the appellants in this case had rightly anticipated practical problems which they were going to face and had not only filed a representation and discussed the matter with the concerned authorities but obtained a written permission dated 24-2-1984. Their contention that the procedure agreed upon was strictly followed has not been contradicted or shown to be wrong. On the other hand, the reading of the Assistant Collector s order shows that there was no doubt about the same. Again, the letter of the Additional Collector dated 24-2-1984 shows that the interim facility was granted so that the production is not hampered. It only puts a condition that no clearance is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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