9911796707
TMI Blog1971 (4) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... central authority and Deputy Director of Inspection too has been impleaded as a respondent is concerned, an additional ground, to which reference would be made hereafter, is also taken. The petitioner is a company which owns about 16 cement factories in various parts of India. Tax Credit Certificate (Excise Duty on Excess Clearance) Scheme, 1965 (hereinafter called " the scheme "), was made applicable to the cement industry in 1965 to provide an incentive for increased production. The above scheme was made, by the Central Government in exercise of the powers conferred by section 280ZE read with section 280ZD of the Income-tax Act, 1961, which had been inserted by the Finance Act, 1965. For the year 1965-66, with which we are concerned, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sted by the respondent. We have heard Mr. Kolah on behalf of the petitioner and Mr. B. Kishore on behalf of the respondent, and are of the opinion that there is no merit in the petitions. Before proceeding further in the matter, it would be pertinent to reproduce the relevant provisions of law. According to section 3 of the Excise Act, there shall be levied and collected in such manner as may be prescribed duties of excise on all excisable goods other than salt which are produced or manufactured in India, and a duty on salt manufactured in, or imported by land into, any part of India as, and at the rates, set forth in the First Schedule. Cement is one of the commodities mentioned at entry No. 23 in the First Schedule to the Excise Act, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equal to 33 1/3 per cent. of the total amount so chargeable on such goods. (2) Sub-section (1) shall cease to have effect after the 31st day of March, 1966, except as respects things done or omitted to be done before such cesser ; and section 6 of the General Clauses Act, 1897 (10 of 1897) shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act. (3) The duties of excise referred to in sub-section (1) in respect of the goods specified therein shall be in addition to the duties of excise chargeable on such goods under the Central Excises Act or any other law for the time being in force and such special duties shall be levied for purposes of the Union and the proceeds thereof shall not be distributed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tificate shall be granted under sub-section (1) and the rate at which the amount of such certificate shall be calculated shall be such as may be specified in the scheme : Provided that different rates may be specified in respect of different goods. . . . (6) In this section- (a) 'base year', in relation to an existing undertaking which manufactures or produces the goods referred to in sub-section (1), means the financial year commencing on the 1st day of April, 1964, and in relation to any other undertaking, the financial year in which such undertaking begins to manufacture or produce such goods ; (b) 'duty of excise' means the duty of excise leviable under the Central Excises and Salt Act, 1944 (1 of 1944.) " Section 280ZE empowers th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the duty levied under the Excise Act. This contention has been controverted by Mr. B. Kishore and we are of the opinion that it is not well founded. Perusal of section 80 of the Finance Act, 1965, reproduced above, makes it clear that special excise duty equal to twenty per cent. of the duty of excise under the Excise Act has been levied by that section. The duty levied by section 80 cannot be considered to be a duty under the Excise Act but is a duty levied under section 80 of the Finance Act. It has also been described as special duty of excise by that section. The tax credit certificates in relation to increased production of certain goods are granted under sub-section (1) of section 280ZD of the Income-tax Act. Such a tax credit certi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of customs or excise " are of wide amplitude and any observations in that context can obviously be of not much help while dealing with a case under section 280ZD of the Income-tax Act, 1961, which provides a special definition of duty of excise. An additional question arises in Petition No. 425 of 1968. It has arisen in the following circumstances : Application for a tax credit certificate was received from the petitioner by the Central authority on June 24, 1966. Orders thereon were passed and tax credit certificate for the amount determined was issued in December, 1966. A supplementary application was received from the petitioner by the Central authority on August 26, 1967. The supplementary application received on August 26, 1967, wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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