9911796707
TMI Blog1998 (2) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... 31/85, dated 11-11-1985 in respect of the tyres and tubes. However, this was a conditional notification and one of the conditions related to the value of clearance. According to the Department, they had not satisfied this condition. The aforesaid notification had been amended by an amending Notification No. 42/89, dated 1-3-1989. The explanation added by this amending notification changed the basis of calculation of value for purpose of clearance. The learned Collector (Appeals) has granted benefit of this amendment even for the period prior to 1-3-1989. Whereas according to the department the benefit could be extended only with effect from the date of issue of notification and onwards. 3. Learned Counsel drew attention to the discussion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove said Notification No. 231/85 the superseded Notification No. 65/81-C.E., dated 25-3-1981 (as amended) granted concessional rate of duty for tyres of motor vehicles falling under Item 16(1)(I) only. The tyres and tubes for cycle were classifiable under Item 16(1)(II). No exemption was, however, available under the said notification to tyres of two wheeled motor vehicles. (Tyre including inner tube and flap). The Notification No. 231/85 was issued to extend the concessional rate of duty to tyres for two wheeled motor vehicles. Instead of superseding the Notification No. 65/81 the purpose would have been served by the deleting the exclusion clause from the opening para of the notification as except for this change, Notification No. 231/85 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng aggregate value in case of the said manufacturers. Thus, there could not be different criteria under the same notification for those who had cleared the said goods during the preceding financial year and for those who had not cleared the said goods during the preceding financial year. Although there was no ambiguity and the position was clear in the Notification 231/85 regarding non-inclusion of value of clearance of cycle tyres and tubes, for computing the aggregate value of clearances, Explanation No. 1 was added vide Notification No. 42/89-C.E., dated 1-3-1989 to remove certain unfounded doubts raised by the Departmental Officer and the audit parties. 9. Learned Counsel cited the following case law in support of his contentions :- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is in excess of the amount calculated at the rate of 50% of the rate of duty leviable on the said goods under the said schedule, read with any other notification issued under sub-rule (1) of rule 8 of the said rules and in force for the time being : Provided that the aggregate value of first clearances of the said goods, for home consumption at the concessional rate of duty in terms of notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 65/81-Central Excises, dated the 25th March, 1981, and at the reduced rate of duty as specified in this notification - (i) by or on behalf of a manufacturer, from one or more factories; or (ii) from any factory, by or on behalf of one or more manufacturers, sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared for the first time on or after the first date of August in the preceding financial year, the exemption contained in this notification shall not be applicable, if the aggregate value of clearances of the said goods from such factory, for home consumption, by or on behalf of one or more manufacturer exceeds rupees two crores during the financial year." 12. It would be seen from the above that the first para itself requires this notification to be read with any other exemption notification; And, the first proviso specifically refers to the need for calculating the aggregate value with reference to Notification No. 65/81 as well as this notification (taken together). Therefore, monitory limits prescribed in the second proviso are req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pproved premises in accordance with law and it is immaterial whether the goods were dutiable or not during a particular period. There is no warrant for considering that the term `clearance refers to removal of only dutiable goods and not exempted goods, as inter alia, even exempted goods remain excisable goods even though by virtue of a particular notification, no duty may be payable during a particular period and in fact, excise provisions contain rules and procedures not only in respect of declaration, storage and removal of dutiable or exempted goods but even other goods. Therefore, learned Collector s order is apparently based on a mis-conception about `clearance . In any eventuality, in a notification which specifically covers exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
