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TMI Blog2000 (11) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... by which exemption or other benefits are provided by the Government in exercise of its statutory power, normally have some purpose and policy decision behind it. Such benefits are meant to be provided to the investors and manufacturers. Therefore, such purpose is not to be defeated nor those who may be entitled for it are to be deprived by interpreting the notification which may give it some meaning other than what is clearly and plainly flowing from it.In view of the discussion held above, we find no merit in the appeals and they are hereby dismissed. - Civil Appeal No.77-78 of 1989 - - - Dated:- 7-11-2000 - U.C. Banerjee and Brijesh Kumar, JJ. T.L.V. Iyer, Senior Advocate (Hemant Sharma, Rajiv Nanda and B.K. Prasad, Advocates, with him), for the appellant. [Judgment per : Brijesh Kumar, J.]. - Since the above noted two appeals involve a common question for determination, as to the interpretation of a Notification issued by the Central Government under sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, exempting goods falling under Item No. 68 of the First Schedule to the Central Excises and Salt Act, 1944, on fulfilment of certain conditions, the appeals ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment on liquid nitrogen plant which alone is relevant is much less than rupees ten lakhs. The appeal preferred against the order of Assistant Collector was also dismissed by the Collector (Appeals), Central Excise, Calcutta by order dated 9-1-1984. Both the authorities have, however, held that liquid nitrogen itself is a finished product and falls under Tariff Item 68. 4.The respondents preferred an appeal before the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi. The Appellate Tribunal by its order dated 21-1-1988 allowed the appeal holding that the respondents would be entitled for the benefit under the Notification of exemption. On facts though the Tribunal remanded the matter to the original adjudicating authority for computing the capital investment on plant and machinery referable to liquid nitrogen and the common plant and machinery in the same industrial complex so as to ascertain the capital investment on generator used for the chilling water. 5.We feel it would be better to peruse the Notification dated 19-6-1980 exempting the payment of excise duty on goods falling under Item 68 of the Tariff. It reads as follows : In excise of the powers con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cturer, if the total value of the said goods cleared, if any, for home consumption by him or on his behalf from one or more factories in the preceding financial year exceeded rupees thirty lakhs. Explanation I. - While determining the sum total of the value of the capital investment, only the face value of the investment at the time when such investment was made shall be taken into account, but the value of the investment made on plant and machinery which have been removed permanently from the industrial unit or rendered unfit for any use shall be excluded from such determination. Explanation II. - In this notification, the expression 'factory' has the meaning assigned to it in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948). Explanation III. - For the purpose of computing the value of clearances under this notification, the clearances of the said goods which are exempted from the whole of the duty of excise leviable thereon by ay other notification issued under sub-rule (1) of rule 8 of the Central Excise Rules, 1944, and for the time being in force, shall not be taken into account . A bare perusal of the Notification quoted above shows that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Union of India and Another. The similar notification in respect of an earlier year was under consideration before the Court. It has been noticed that two words have been used in the Notification namely, the 'factory' and 'industrial unit'. The two expressions would be presumed to have been used for different meaning. It was held that industrial unit would mean something other than the factory, which would be a separate isolate part of the plant which is exclusively used for manufacture of goods for which exemption is claimed. Learned counsel for the appellants tried to distinguish the case on facts. We, however, find that in principle what has been held in Devidayal (supra) as followed by the Tribunal, cannot be said to be an incorrect view. The factual deviation would be a matter on facts of each case. The other case which the Tribunal has referred to is reported in 1987 (27) E.L.T. 273 (A.P.) - Golden Press v. Deputy Collector of Central Excise, Hyderabad and Another. In this case a notice was issued on the manufacturer of cartons as to why penalty be not imposed since the goods manufactured were removed without payment of duty. It was pleaded that cartons were e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich exemption has been granted. But the word said is not used in the Notification under consideration in the case of Golden Press (supra) as indicated above says .. industrial unit in which the goods under clearance are manufactured .. . The goods have not been specified by using the expression said goods . In the Notification dated 19-6-1980, as already indicated earlier, the goods falling under Item 68 are to be referred as said goods . Therefore, in our view it will not be possible to take into consideration the value of investment of all the plants and machinery manufacturing different items viz. goods other than the said goods . 7.In our view the Tribunal rightly preferred the view taken in the case of Devidayal (supra). The factual hurdles like a common generator may be in use by different units in the factory complex as indicated in the case of Golden Press (supra) can well be worked out by devising proper method while apportioning the value of different plants proportionately. In no way such hurdle, as posed, would change the meaning of a Notification which on the face of it and by the plain language used therein has unambiguous and clear meaning. 8.Such Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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