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TMI Blog1997 (4) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... er 19 of the Central Excise Tariff Act, 1985. They are clearing biscuits in cardboard boxes as well as in metal containers and in both cases the packing, either of cardboard boxes or metal containers, is primary packing. The assessee filed a classification list for 1986-87 and claimed the benefit of Notification 175/86 on the ground that value of their clearances viz. of the biscuits did not exceed Rs. 1.50 crores in the preceding financial year 1985-86. According to them the value of the clearances of the biscuits during the preceding financial year was Rs. 1,46,66,455.63. However, the value of metal containers in which the biscuits were packed amounted to Rs. 8,31,652/- during the preceding financial year. The Assistant Collector disallow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Shri D.K. Saha in support of assessees appeal has submitted that by Notification 34/83, preserved and prepared food are exempted from duty to the extent of the cost of metal containers in which such prepared food (biscuits) are put up for sale in such metal unit containers. In other words, he submits that Notification 34/83 is a notification exempting the metal containers to the extent of the value thereof. He, therefore, submits that Explanation II to Notification 175/86 would be applicable in their case. For the sake of appreciating his arguments, we reproduce below the Explanation :- Explanation II. - For the purpose of computing the aggregate value of clearances under this notification, the clearances of any excisable goods, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant that the value of the packing has to be excluded for the purpose of Section 4. Coming to Explanation II, learned SDR has submitted that this Explanation is applicable only in cases where a manufacturer manufactures several excisable goods and some of the goods are wholly exempted from payment of duty. Only in those cases, the value of clearances of the wholly exempted excisable goods is not to be taken into account in view of Explanation II. He, therefore, submits that this is not the case in the present matter. Here, the assessee is manufacturing only biscuits and biscuits are partially exempted to the extent of the cost of metal containers in which such biscuits are packed. He, therefore, submits that the question of applying Explanat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le goods are manufactured by an assessee/manufacturer and some of the excisable goods are wholly exempted from duty. In that event, in terms of Explanation II, value of clearances of wholly exempted goods is not to be taken into account for computing various values of clearances in terms of the saild Notification. We are of the view that Explanataion II to Notification 175/86 does not apply to the assessee at all because Notification 34/83 does not grant exemption on metal containers. It is only a partial exemption to biscuits to the extent of cost of metal containers included in the value of the biscuits. We, therefore, do not find any substance in the contention of the assessee. Accordingly, we hold that the benefit of Notification 175/86 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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