9911796707
TMI Blog1994 (11) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... ents were engaged in the manufacture of zinc oxide, falling during the relevant time, under Item No. 65 of the Ist Schedule to the Central Excises and Salt Act, 1944 (hereinafter referred to as the `Tariff ). Item No. 65 of the Tariff covered rubber processing chemicals - (1) Accelerators; (2) Anti-oxidants. They were availing of exemption under Notification No. 77/73-C.E., dated 1-3-1973 which provided exemption to inorganic accelerators falling under Item No. 65 of the Tariff, from the whole of the duty of excise leviable thereon. `Inorganic accelerators were explained to mean accelerators which were inorganic compounds, such as zinc oxide and magnesium oxide. With effect from 19-1-1980 vide amending Notification No. 1/80-C.E., dated 19- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the Collector of Central Excise (Appeals), New Delhi was not correct. He pleaded for acceptance of the Revenue s appeal. 5. Shri J.S. Agarwal, the learned Advocate referred to the provisions of Notification No. 77/73-C.E., dated 1-3-1973 as amended by Notification No. 1/80-C.E., dated 19-1-1980, and submitted that the amending notification is dated 19-1-1980, and that the procedural change did not come to the notice of the manufacturer immediately. The period involved in these proceedings is from 19-1-1980 to 22-2-1980. The goods were supplied to the same parties after 19-1-1980 to whom the goods were being supplied prior to the procedural change. There was no change in as far as the exemption was concerned. The failure on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue and Insurance) No. 77/73-Central Excises, dated the 1st March, 1973, namely :- In the said notification, before the explanation, the following proviso shall be inserted, namely :- Provided that nothing in this notification shall apply to Zinc Oxide unless - (i) the Assistant Collector of Central Excise is satisfied that the Zinc Oxide is intended for use in the manufacture of rubber; and (ii) the procedure set out in Chapter X of the said rules is followed in the matter of obtaining remission of duty on Zinc Oxide." As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of rubber, glass, pottery and other ceramic goods, and (ii) the procedure set out in Chapter X of the Central Excise Rules, 1944, is followed in the matter of obtaining remission of duty on such goods." With effect from 19-1-1980, as a measure of rationalisation, zinc oxide, whether classifiable under Item No. 14 or Item No. 65, were accorded the same treatment. 9. Chapter X Procedure of the Rules prescribes a detailed procedure to be followed both by the manufacturer of the specified excisable goods, and by the person wishing to obtain remission of duty on such goods. The person wishing to obtain the remission of duty is required to apply to the proper officer in Form AL-6, and the proper officer had to grant licence to such per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. (Refer para 4 of the Order-in-Appeal). 11. In this case the amending notification was issued on 19-1-1980. The show cause notice is dated 27-3-1980. The period involved is from 19-1-1980 to 22-2-1980. There is no allegation that the goods were not the rubber processing chemicals (`Inorganic accelerators ), or were not classifiable under Item No. 65 of the Tariff, or the goods were not used in the manufacture of rubber. They were supplied to the same parties to whom the goods were being supplied earlier. There were 13 gate passes involved and out of these admittedly in 6 cases, the goods were directly consigned to the manufacturers of the rubber goods. Even in cases where zinc oxide was disposed of to the dealers, the respondents sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned, there need not be any doubt that the zinc oxide finally reached manufacturer of rubber and were used for the intended purpose. In the circumstances explained by the appellants it is understandable why they were not able to follow the Chapter X procedure as required under amending Notification No. 1/80, dated 19-1-1980. It was pointed out during the hearing that in the show cause notice the only charge against the appellants was that they had not followed Chapter X. It was not the case of the department that the zinc oxide was not utilised for the intended purpose. 12. In the circumstances of this case, it could not be expected of the assessee to start observing the procedure under Chapter X of the Rules (which prescribed a number of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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