9911796707
TMI Blog1983 (5) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... e (CET, for short), are duty paid. On 18-6-1977, the Central Government issued Notification No. 178/77 under Rule 8(1) of the Central Excise Rules, 1944, exempting all excisable goods on which duty of excise is leviable and in the manufacture of which any goods falling under Item No. 68 CET ( Inputs ) have been used, from so much of duty of excise leviable thereon as is equivalent to the duty of excise already paid on the Inputs . By virtue of clause 37(1) of the Finance Bill 1978, special excise duty became leviable on all excisable goods at the rate of 5% of the amount of excise duty chargeable on such goods. The appellants contended that the basic excise duty leviable on other goods should first be reduced by the amount of exemption con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tten submissions. However, at the request of the SDR, the appeal was adjourned to 22-4-1983. Since the appellants had already submitted that they did not wish to make a personal appearance, we decided to dispose of the appeal on merits with the assistance of Shri Tayal, SDR. In the meanwhile, the appellants had, by a communication, brought to our notice certain provisions in the Finance Bill 1983 which, in their view, would go to establish the correctness of their contention. 3. In order to appreciate the issue involved and the rival contentions, it is necessary to consider the provisions of Clause 37 of the Finance Bill, 1978 which are reproduced below :- 37. Special duties of Excise 1 of 1974. - (1) In the case of goods chargeable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (SAKA) NOTIFICATION CENTRAL EXCISES In exercises of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts all excisable goods (hereinafter referred to as the said goods ) on which the duty of excise is leviable and in the manufacture of which any goods falling under Item No. 68 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944) (hereinafter referred to as the inputs) have been used, from so much of the duty of excise leviable thereon as is equivalent to the duty of excise already paid on the inputs : Provided that where the duty of excise leviable on the said goods is less than amount of duty of excise paid on the inputs, the extent of e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing in force issued by the Central Government in relation to the duty so chargeable (not being a notification providing far any exemption for giving credit with respect to, or reduction of duty of excise under the said Act on such goods equal to, any duty of excise under the said Act, or the additional duty under Section 3 of the Customs Tariff Act, already paid on the raw material or component parts used in the production or manufacture of such goods), there shall be levied and collected a special duty of excise equal to ten per cent of the amount so chargeable on such goods. (Emphasis supplied by us). Sub-sections (2), (3) and (4) are substantially on the same lines as in the 1978 Finance Bill. 5. We have carefully considered the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods (which would naturally include plywood falling under Item 16B CET by an amount of duty equal to the duty paid on the Inputs falling under Item 68 CET. It is, therefore, clear that the amount of basic excise duty leviable on plywood computed at 27.5 per cent ad valorem should be computed at 5 per cent of the resultant amount. That this is the correct mode of computation of special excise duty gains support from the provisions of sub-clause (1) of Clause 55 of the 1983 Finance Bill which, in specific terms, provides that the notification referred to therein would not cover a notification providing for any exemption for giving credit with respect to, or reduction of duty of excise under the Central Excises Act on such goods, equal to, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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