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TMI Blog1983 (9) TMI 295X X X X Extracts X X X X X X X X Extracts X X X X ..... y were entitled to the benefit of Central Excise Notification No. 71/78, dated 1-3-1978. One of the condition laid down in the said notification was that the aggregate value of goods cleared for home consumption during the period 1-4-1977 to 28-2-1978 should not have exceeded ₹ 13.75 lakhs. Only if the manufacturer fulfilled this condition, would he be eligible to the benefit of the notification in the financial year to follow, namely, 1978-79. It is the claim of the appellants that certain goods which were cleared during the period 1-4-1977 to 28-2-1978 were returned by their customers, that they were received back in the factory, that the return of the goods was duly verified by the Central Excise authorities and that they had recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned in terms of Explanation-I to the said notification. 4. Shri A.K. Jain, SDR, resisted the appeal on the ground that the goods were initially cleared for home consumption and that their return could not make any difference to this position. They had not been cleared on approval or provisional basis. Even if the value of the goods returned on 22-6-1977 were to be excluded, the aggregate value of goods cleared during the relevant period was in excess of ₹ 13.75 lakhs. He also submitted that notification did not specifically provide for exclusion of returned goods nor was the sale or otherwise. 5. We have considered the submissions of both sides. The relevant portion of Notification No. 71/78 reads as follows :- The excisable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods are cleared for home consumption after observance of the prescribed procedure and payment of duty, the goods should be deemed to have been taken into consumption. In fact, even goods which are captively consumed are considered as having gone into home consumption; otherwise there would be no warrant for levy of excise duty on captively consumed goods. And the Law does envisage payment of duty on captively consumed goods vide Rules 9 and 49 of the Central Excises Rules read with Section 3 of the Central Excises and Salt Act. Therefore, to say that goods once cleared from the factory for home consumption should be deemed not to have been taken into consumption because they were returned by the customer for one reason or the other, does n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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