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TMI Blog1983 (10) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... r 1-4-1973. Under Notification 198/76-C.E. the Assistant Collector fixed the base clearance for all the 4 factories at 2,169,606,076 kg., with reference to clauses (b) and (c) of sub-paragraph 2(2) of the notification. Of the 2,169,606.076 kg., 584,980.766 kg. are accounted for by the fourth factory (which started clearances after 1-4-1973. We shall here refer to this factory as the fourth factory) South India Carbonic Gas claimed concessional duty for the fourth factory on carbon dioxide cleared from it over the 548,980.766 kg. which was reached on 20-11-1977. The Assistant Collector held that Notification 198/76-C.E. had no provision for this and that the base clearance of the manufacturer as a whole should be taken into account. He held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Jain, learned Counsel for the department made arguments on behalf of the Department. 4. He argued that the clubbing by the Assistant Collector was not incorrect because the assessment had to have one base clearance which must be calculated by taking clearances by or on behalf of one manufacturer from one or more factories. From the wording of Notification 198/76-C.E. it is clear that the benefit is to a manufacturer (and not to a factory) who has one or more factories. It is evident that there must be one base clearance if there is one manufacturer. He said that scheme of the notification requires what the Assistant Collector did and the appeal should be rejected. 5. First of all, we must note that while the base clearance of first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ula for reckoning the base clearance of factories that produced after 1-10-1972 but cleared before 1-4-1973. What we have to decide is whether the Assistant Collector was correct in adding the base clearances of the fourth factory to the base clearance of the first three factories to arrive at a common base clearance of the four factories. 6. The South India Carbonic Gas say that by doing so, the Assistant Collector has changed the base period of the fourth factory from 1973-1974, 1974-1975, 1975-1976 to 1973-1974, the base period for the first three factories. The appellants say there is no authority for this. A careful reading Notification 198/1976-C.E. sub-paragraph (2) of paragraph 2 would, in our opinion, support the appellant. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actories in clause (a) (b) and (c) in each of which can fall one or more factories. Indeed amending Notification 271/76-C.E. envisages fixation of a common base clearance for more than one factories in such manner that the highest clearance for all factories, in any financial year of the base period is to be taken as the base clearance. There seems to be no other meaning in dividing factories according to the date on which they first cleared the specified goods and in elaborating the method of determining the base clearance for each category. Thus, for different categories of factories, different base clearances have been indicated, each factory to be bracketed with other factories of the same category; but there is nothing anywhere in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 75-1976; by combining the two base clearances, the first three factories will have 1974-1975 and 1975-1976 as base periods additionally, when their true base periods is 1973-1974. We can find nothing in the notification anything that permits this or anything that requires such combination. We therefore, have to conclude that the action of the Assistant Collector and the Appellate Collector was wrong. We allow the appeal. 8. The fourth factory i.e. the factory that has its base period 1973-1974, 1974-1975, 1975-1976 should have its base clearance unlinked from the other three factories and its duty liability determined accordingly. On the above principles the other three factories will have their duty liabilities determined as well. Al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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