9911796707
TMI Blog2001 (10) TMI 1091X X X X Extracts X X X X X X X X Extracts X X X X ..... below : ORDER R. Jayasimha Babu, J. As to whether Notification No. 217 of 1986-C.E., dated 2-4-1986 issued under Rule 8(1) of the Central Excise Rules exempting the specified inputs manufactured in a factory and used within the factory of production in or in relation to the manufacture of final products also specified in the notification, from the whole of the duty of excise leviable thereon, is a notification to which the provisions of the Central Duties of Excise (Retrospective Exemption) Act, 1986 (Act 45 of 1986) is applicable, is the question raised before us by a manufacturer who makes the inputs which are specified in the notification and uses the same within the factory of production. 2. The assessee was, prior to the issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim for the exemption was negatived by the Collector, and the Collector's view had been affirmed by the Tribunal. The manufacturer is aggrieved by that order of the Tribunal. 4. Act 45 of 1986 was enacted in order to give retrospective effect to notifications issued under Rule 8(1) after the 3rd of March, 1986, but before the 8th of August. Such retrospective effect to commence on and from the first day of March, 1986. Indisputably the notification dated 2-4-1986 is one which was issued during the period specified in Section 2 of Act 45 of 1986. According to the revenue, the retrospective operation cannot be given to that notification as according to it that notification was not one which had been issued for the purpose of maintainin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e fact that the inputs referred to in the notification are with reference to Chapter headings of the schedule to the Central Excise Tariff Act, 1985 does not also make a difference. 7. Counsel for the assessee also relied on a judgment of the Karnataka High Court in the case of The Collector of Central Excise v. Mysore Lamp Works Ltd., 1993 (64) E.L.T. 193 (Kar), wherein it was held by the Division Bench, inter alia, that the notification exempting the articles from the excise duty after the Finance Act, 1985 came into effect from 1-3-1986, having been issued subsequent to 1-3-1986 and retrospective effect of not having been given therein, it had become necessary to enact Act 45 of 1986. It was also observed by the Court that by effec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ped and his order is required to be confirmed. 4. We find that proceedings were initiated against the appellants by issue of show cause notice by the Supdt. of Central Excise, Hosur I Range, regarding use of parts/accessories for manufacture of motor vehicles and IC engines used for further manufacture of motor vehicle (Moped). The appellants resisted the show cause notice and the Assistant Collector after due consideration of the matter dropped the proceedings. The duty amount involved is Rs. 18,93,325/-. However, the Department filed appeal before the Collector (Appeals) and the Collector (Appeals) reversed the order of the Assistant Collector and held that the assessees are required to pay duty in terms of the demand raised in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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