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TMI Blog1983 (10) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... rers of Electric Motors as well as Stators and Rotors, both falling under Item 30 of the Central Excise Tariff. During the years 1978-79 and 79-80, stators and rotors to the value of ₹ 1,68,276 and ₹ 1,65,219 respectively had been clearned but were not included in the value computed for purposes of availing of exemption under Notification No. 71/78 in respect of electric motors all sorts and parts thereof. Since electric motors to the value of ₹ 3,99,700 and ₹ 3,99,750 were cleared respectively during 1978-79 and 1979-80, the total value of goods cleared would work out to ₹ 5,67,975 and 5,64,969 respectively and would exceed the limit of ₹ 5 lakhs for which exemption was granted. A show cause notice was i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 1979-80 should be excluded for calculating the aggregate value of clearances. In which case clearances of stators and rotors to the tune of ₹ 1,68,276 and ₹ 1,65,219 respectively should alone be taken into account thereby conceding their eligibility to exemption under Notification No. 80/80. These points were reiterated and additional grounds of submission in writing, were also presented. The Appellate Collector held that the law must be applied as it stood at the time of the currency of the issue and anything occurring later shall not have relevance to an earlier event. The contention that on principles of equity the principle laid down in Explanation VI should be applicable to an earlier period is not lawful as there is nei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on was issued. The appellants feel that this clarification is equally applicable to 1978-79 and 1979-80 for the following reasons. Exemption under Notification 71/78 was being availed of after necessary declaration and if they failed to include the value of stators and rotors separately, the authorities should have got the defects rectified. They did not do so because they were equally unaware of the position, till issue of Notification 123/80. This is without prejudice to the contention that Explanation VI should be considered effective from the date Notification No. 80/80 was declared effective. In either case Rule 10(a) would not come into play since there was no collusion, fraud or suppression of facts. Their declaration was accepted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the same way the electric motor is technologically an integral part of the mono-block power pump and for the simple reason that the clarification sought for came later, it should not be held that the clarification was not retrospectively applicable. In their letter F. No. 138/81-Cx. 4, dated 24-2-1982, Government of India had clarified in the case of copper alloy that it was applicable to all cases and not only those arising subsequent to the clarification. It would amount to denial of justice if it is not implemented in respect of cases past and present as Notification 57/78 was issued on 1-3-78 itself and is effective from that day. The appellants have cited revisional order Nos. 256/257-B/81, dated l2-5-1981 which held that goods pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounded. His order does not discuss this specific submission. Since Government have clarified that motors are not to be included, the question to be decided is whether the clearances of stators and rotors during the said two years exceeded the value of ₹ 5 lakhs. It is quite clear from the show cause notice dated 15-11-1980 that the value was far less. A Xerox copy of an order dated 18-6-1982, by the same Appellate Collector, holding that only the value of stators and rotors should have been included for purposes of Notification 71/78 and since it does not exceed this limit, the impugned order is not based on law, has been filed. The present order was passed five months earlier and it is unfortunate that the same ratio has not been ext ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is being introduced for the first time. Notification No. 71/73 was superseded by No. 80/80 which was amended by 123/80. This gives exemption to small scale manufacturers of certain specified goods among which arc power driven pumps (30A) and electric motors, all sorts, and parts thereof (30). The inputs and outputs fall under different items hence the question of excluding the value is of no relevance and since the value of. motors plus that of stators and rotors exceeded ₹ 5 lakhs in 78-79 and 79-80, the duty on the excess clearances had been correctly ordered to be paid. 6. In reply, Shri Govinda Rajan pointed out that under Notification No. 73/68, dated 17-4-1968, stators and rotors used in the manufacture of electric motors we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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