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TMI Blog2017 (3) TMI 373X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 or by an exemption notification issued under section 5(1) of the Central Excise Act, 1944. Appellant is a composite mill manufacturing excisable goods falling under various chapters. of the First Schedule to the Central Excise Tariff Act, 1985 and exemption is claimed under notification 67/95-CE dated 16th March 1995 on woollen yarn, polyester yarn, wool tows and polyester tows that are captively consumed for manufacture of fabric. Two show cause notices were issued to the appellant for recovery of Additional Duties of Excise (Textile and Textile Articles) Act, 1978 to the extent of Rs. 69,46,926/- for January - February 2003 and to the extent of Rs. 1,87,34,372/- for March - September 2003 The order-in-original no. 30/KKS/2003-2004 dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dependent legislation and that the exemption for captive consumption is restricted to such duties of excise as are specified in the schedule to the Central Excise Tariff Act. Reliance was placed on the decision of the Tribunal in Commissioner of Central Excise, Ahmedabad v. Mahendra Petrochemicals Ltd [2013 (297) ELT 232 (Tri.-Ahmd.)] which followed the decision of the Hon'ble High Court of Himachal Pradesh in Indo Farm Tractors and Motors Ltd v. Union of India [2008 (222) ELT 184 (HP)] and, in particular, to '6. We find that the ratio laid down by the Hon'ble High Court covers the issue inasmuch as the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 talks about leviability of Additional Duties of Excise as a percentag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er arising out of difference of opinion between two members of the bench, held that the decision in Toyota Kirloskar Motor Pvt Ltd v. Commissioner of Central Excise, Bangalore [2007 (217) ELT 403 (T)] exempts the additional duty when read in conjunction with any exemption provided by any of the rules/provisions of the Central Excise Rules framed under Central Excise Act, 1944. We note that the decision in re Rivaa Exports Ltd was subsequent to the decision in re Mahendra Petrochemicals Ltd and also takes note of the decision of the Hon'ble High Court of Himachal Pradesh in re Indo Farm Tractors and Motors Ltd which was followed in Mahendra Petrochemicals Ltd. In this connection we also take note of the decision of the Tribunal in Gokak Mill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion from excise duty or additional excise duty is restricted to such duties leviable under any of the three acts specified in the notification under which the said notification has been issued and not to any other duty leviable under any other statute. 12. It is settled law that the exemption notification has to be strictly interpreted. The power to exempt a product from payment of duty vests in the Government. Once the Government specifies the statute and further clarifies that the exemption is in relation to the duty leviable under those statutes, under the guise of interpretation of such notification, the scope of exemption cannot be expanded so as to include some other duties leviable under some other statute, may be of the same natur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, 1975 (51 of 1975), already paid on the raw material used in the production or manufacture of such goods), are assessed to duty, there shall be levied and collected a duty of excise equal to 2 fifteen per cent. of the total amount so chargeable on such goods.' 9. It is his contention that the incorporation of the expression 'chargeable' and 'assessed to duty' renders levy and collection duties of excise under this statute beyond law if goods are not 'chargeable to duty' and 'assessed to duty'. According to him, chargeability flow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are subject to some concessional rate of duty in contradistinction with those that are subject to 'nil' rate of duty being burdened with additional duty in full which is an absurdity. We do not consider that it was the intent of the legislature to palpably discriminate thus when subjecting textile article to this levy. 12. We also note that the decision in re Indo Farm Tractors and Motors Ltd, relied upon in the decision of re Hero Honda Motors Ltd, relates, primarily, to cess leviable on automobile under the Industries (Development and Regulation) Act, 1951. The said cess was not charged with reference to the basic excise duty and hence adoption of that ratio in the instant dispute would not be appropriate. We also notice that the referen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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