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TMI Blog2012 (3) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... maybe, by mistake pays duty on the goods which are exempted from such payment, does not mean that the goods would become goods liable for duty under the Act. Secondly, merely because the assessee has not claimed any refund on the duty paid by him would not come in the way of claiming benefit of the Notification No.175 /86-CE dated 1.3.86. Therefore, Order of the Tribunal is set aside and adjudicating authority is directed to apply the Notification dated 1.3.86 in the assessee's case without taking into consideration the excess duty paid by the assessee under the Notification dated 1.3.1988 - Decided in favor of assessee. - Civil Appeal No. 6433 OF 2003 - - - Dated:- 14-2-2012 - H L Dattu and Anil R Dave, JJ. For Appellant: Mr K Kum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under: "(a) in the case of the first clearance of the specified goods upto an aggregate value not exceeding rupees thirty lakhs,- xxx xxx xxx (ii) in any other case from the whole of the duty of excise leviable thereon: Provided that the aggregate value of clearances of the specified goods under Sub-clause (ii) of this clause in respect of any one Chapter of the said Schedule, shall not exceed rupees twenty lakhs [ w.e.f . 1.4.1990]...." "Explanation II For the purposes of Computing the aggregate value of clearances under this Notification, the clearances of any excisable goods, which are chargeable to nil rate of duty or which are exempted from the whole of the duty of excise leviable thereon by any other Notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication, from the whole of the excise duty leviable on the said goods. It is an admitted fact that the assessee is the manufacturer of specific goods falling under Serial No. 12 of the table appended to the Notification. 6. We once again make it clear that the assessee in the instant case is a manufacturer of goods falling under both chapters 32 and 84 of the Act. 7. The assessee has filed its declaration before the adjudicating authority, inter alia, informing him that the assessee would be claiming exemption from payment of excise duty for a sum of Rs.20 lacs under Chapter heading 32 of the Act and upto Rs.10 lacs under Chapter heading 84 of the Act. 8. The adjudicating authority has issued two show cause notices dated 26.11.1992 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Excise (Judicial) in his Review Order dated 17.2.1994 found that the Order-in-Original dated 12.3.1993 is legally incorrect and is passed by the authority which is incompetent on account of monetary limits. He further directed the Assistant Collector to file an appeal before the Collector, Central Excise (Appeals) for appropriate remedy. On Review Appeal, the Collector, Central Excise (Appeals) vide its order dated 2.6.1994 had set aside the Order-in-Original and remanded the matter to the Competent adjudicating authority (Deputy Commissioner) for de novo proceedings. Thereafter, the adjudicating authority vide Order dated 7.1.2000 while rejecting the assessee's claim had confirmed the duty demanded and also imposed the penalty. 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.175 /86-CE. In our view, merely because the assessee, maybe, by mistake pays duty on the goods which are exempted from such payment, does not mean that the goods would become goods liable for duty under the Act. Secondly, merely because the assessee has not claimed any refund on the duty paid by him would not come in the way of claiming benefit of the Notification No.175 /86-CE dated 1.3.86. 14. In Union of India v. Wood Papers Ltd., (1990) 4 SCC 256 ) , this Court has observed: 4. Literally exemption is freedom from liability, tax or duty. Fiscally it may assume varying shapes, specially, in a growing economy. For instance tax holiday to new units, concessional rate of tax to goods or persons for limited period or with the specif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In fact, an exemption provision is like an exception and on normal principle of construction or interpretation of statutes it is construed strictly either because of legislative intention or on economic justification of inequitable burden of progressive approach of fiscal provisions intended to augment State revenue. But once exception or exemption becomes applicable no rule or principle requires it to be construed strictly. Truly speaking, liberal and strict construction of an exemption provision is to be invoked at different stages of interpreting it. When the question is whether a subject falls in the notification or in the exemption clause then it being in the nature of exception is to be construed strictly and against the subject but o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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