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TMI Blog1982 (3) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... ed goods falling under Item No. 68 of the First Schedule and cleared for home consumption by a manufacturer whose sum total of the value of the capital investment is not more than Rs. 10 lakhs. The petitioner satisfies this test but there is a provision which lays down that this exemption shall not be applicable to a manufacturer if the total value of all excisable goods cleared by him or on his behalf in the preceding financial year had exceeded rupees thirty lakhs. The Central Government also exempted utensils made of aluminium falling under Item No. 68 of the Schedule from whole of the duty. Admittedly, the clearance during 1977-78 of the petitioner was over Rs. 30 lakhs. By another Notification of 15-7-1977, the Government had excluded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... substance. It will be seen that Rule 8 grants exemption from payment of duty on excisable goods. Thus, Rule 8 itself postulates that the goods on which exemption has been granted are excisable. By issue of a notification goods do not cease to be excisable goods. They remain excisable goods so far as any item in the Schedule includes them. Undoubtedly Item No. 68 of the First Schedule continues to cover aluminium utensils. They are, thus, excisable goods. What happens by issue of a notification under Rule 8 is that a manufacturer becomes entitled to claim exemption and not that the goods cease to be excisable goods. The condition precedent to the applicability of Rule 8 is the existence of excisable goods. Exemption from payment of duty is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to hold that by issue of a notification it would mean that the goods had been taken out of the First Schedule and, therefore, ceased to be excisable goods. In our view this obiter could not be accepted as laying down that the Notification issued under Rule 8 has the effect of taking the item out of First Schedule. As a matter of fact, notification is issued under Rule 8 precisely because the goods are covered by the First Schedule. Excisable goods is defined to mean goods specified in the First Schedule as being subject to duty of excise. As admittedly Item 68 continues to cover the goods in question they could not obviously cease to be excisable goods notwithstanding the exemption given. Rule 8 permits exemption of payment from the whole o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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