9911796707
TMI Blog1983 (10) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... , the expression "home consumption" used therein would take within its ambit consumption of excisable goods within the producing factory which, in popular parlance, is referred to and known as "Captive Consumption". The appellants contend that it does not whereas the Department contends it does. 3. The relevant portion of the above notification reads as follows :- "In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts synthetic organic dyestuffs (including pigment dyestuffs) and synthetic organic derivatives used in any dyeing process, falling under Item No. 14D of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), hereinafter refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21-5-1982 claiming the benefit of the above notification on the basis that the value of clearances during the preceding year, excluding the value of dyes used for captive consumption, was less than ₹ 15 lakhs. The Assistant Collector did not accept the appellant's contention that the value of goods captively consumed could not be included in the value of goods cleared for home consumption and passed orders denying the benefit of the notification. The appeal against this order also did not meet with success. Hence the present appeal. 5. The appeal was heard on 10-10-1983. Shri Mehta, the learned Consultant, for the appellants strenuously contended that goods captively consumed within the producing factory could not be said to hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contradistinction to export. Unlike in Notification No. 80/80, Notification No. 44/82 did not provide for exclusion of captively consumed goods for computing the aggregate value of clearances. 7. We have considered the submissions of both sides. Frankly, we are unable to appreciate Shri Mehta's contention that "home consumption" would mean only consumption outside the producing factory and would not take in "captive consumption". We agree with the SDR that the expression "home consumption" should be understood and construed in contradistinction to export. Home consumption, in popular understanding means consumption within the country no matter in which place in the country and how the goods are consumed. Shri Mehta has not cited any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... planation in Notification No. 44/82 on the lines of explanation V to Notification No. 80/80. Shri Mehta has laid much stress on the words employed in Notification No. 44/82, namely, "if the aggregate value of clearances of the said goods by him or on his behalf, for home consumption, from one or more factories...." emphasising, in particular, that the clearances referred to therein must be those from the factory and not within the factory. We are not impressed with this contention. If there was any scope for argument on these lines, that has been set at rest by the amendment to Rules 9 and 49 effected by C.E. Notification No. 20/82, dated the 20th February, 1982 which was given retrospective effect by Section 51 of the Finance Act of 1982. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orts' has independent existence and is well recognised under the statue, for instance the goods meant for `industrial consumption' are differently dealt with by Chapter X of the Central Excise Rules, 1944 and clearances for export are separately dealt with the Rules 12, 13, 14, 191A and 192B ibid. Similarly, under Notification No. 80/80, the value of clearances for `home consumption' is to be computed in relation to goods cleared from one or more factories. Therefore, for purposes of the said notification, the mere clearance of excisable goods is not sufficient rather they should be cleared out of factory because of the words "cleared for home consumption......from one or more factories" as appearing in the opening para of Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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