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TMI Blog2023 (3) TMI 827X X X X Extracts X X X X X X X X Extracts X X X X ..... le Ms. Sulekha Beevi C.S., Member (Judicial) And Hon ble Shri Vasa Seshagiri Rao, Member (Technical) Shri M. Kannan, Advocate for the Appellant Smt. K. Komathi, ADC (AR) for the Respondent ORDER Per Vasa Seshagiri Rao, The appellants, as detailed above, have filed these appeals against the impugned orders confirming the demand of duties along with appropriate interest and also the imposition of penalty denying the benefit of exemption Notification No. 4/2006-CE dated 1.3.2006. As all these appeals involve a common issue, they are being disposed of by this common order. 2. In these appeals, the issue relates to applicability of exemption Notification No. 4/2006-CE dated 1.3.2006 at Sl. No. 72 which deals with the matches classifiable under Chapter 3605.00.10 or 3605.00.90. The same is extracted hereunder:- S. No. Chapter Description of excisable goods Rate Condition 72 36050010 Or 36050090 Matches or in relation to the manufacture of which none of the following processes is ordinarily carried on with the aid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notification. shows that there is no stipulation in it that all the above processes have to take place within the same factory. It also does not stipulate that the benefit is available if the power is not used by the person claiming the benefit of the exemption notification or his job workers. Therefore, the place of use of power is irrelevant. The person who uses the power is also irrelevant. The only thing that is relevant, is that the power should not. have been used in any of the. Six processes mentioned therein. It does not matter if the power is used in any - of the other processes in the manufacture of the matches, the benefit is still available as long as the power is not used in the above SIX processes. If power is used in any of the above SIX processes, then 'the benefit of the exemption _ notification is not available regardless of who used the power in that process or on whose account. 2. The assessee could either undertake the entire manufacture themselves: or outsource any of the processes to a job worker (who completes the process on account of the assessee) or they could purchase goods from a vendor (who completes the process on his own account and sells ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment which is answerable to the Parliament. Further each and every notification is placed before the Parliament whose Committee on Subordinate Legislation scrutinises the notification and directs any changes which it feels is necessary. It is for this reason, the power of making subordinate legislation is. delegated to the Government which is answerable to the Parliament and not to other arms of the State. 7. It is therefore, not open for the Tribunal to: enlarge the scope of the notification by reading into it the additional words that do not exist. Even if it is viewed that the exemption notification can also be interpreted to mean that the power should not be used by the assessee or his job workers only, it cannot be denied that a plain reading of the exemption notification forbids the use of power in processes without reference to who undertakes the processes. 8. Over years, two different approaches were taken while interpreting the exemption notifications strict and liberal or purposive construction. Beneficial exemption notifications have, at times been interpreted so as to serve the purpose of the exemption notification without being unduly restricted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the same chapter which are equally countable such as safety fuses, detonators, signalling flares etc., all have the standard unit as kg. This does not make them not dutiable. 10. It has also been argued on behalf of the appellants that with respect to an exemption notification no. 49/86-CE for footwear, CBEC issued circular No. 1/93-CX -dated 2-12-1993 indicating that the particular exemption notification is available even in cases where the suppliers of the inputs used power. Therefore, the same logic should apply to them. I find that in the first place, CBEC's circular is binding on the department but not on the Tribunal, Secondly, the circular dealt with a different exemption notification and it cannot be treated as a binding ratio and extended to other exemption notifications. Thirdly, the circular was issued at a time when the issue of how to interpret an exemption notification was not settled by the Constitutional bench. of the Supreme Court in the case of Dilip Kumar (supra). Lastly, any clarification by the Board in the form of a Circular cannot prevail over the ruling of the Hon'ble Apex Court that the exemption notifications must be interpreted strictly wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up the manufacturing processes across multiple assessees to enable a larger than deserving claim for exemption. 10. Further, Member (Judicial) rightly points out that the notification does not require that the processes listed therein are required to be carried out by a single/same manufacturer. However, for the reasons I have given above, the converse too is not true. That is, the absence of such a requirement does not automatically entitle the assessee to the exemption. 11. The very heading of the Notification, i.e., GENERAL EXEMPTION NO.47 reads thus: Exemption and effective rate of duty for SPECIFIED GOODS of chapters 25 to 49 and it applies to exempt excisable goods of the description specified in column (3) of the table. So, the conditions upon which the exemption depends is relatable not to the assessee, not the manufacture and not even the manufacturer, but only to the goods specified. 12. It is the case of the appellants that they have procured dipped match splints from other manufacturers who have removed such goods on payment of duty. I find that this would not make any difference since the entitlement to exemption is to be determined separately in each assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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