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TMI Blog2002 (7) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... st Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the said First Schedule), leviable under the Act; (ii) the duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985, leviable under the Central Excise Act, 1944 in relation to the goods falling under sub-heading Nos. 2401.90, 2404.40, 2404.50, 2404.99, 5402.20, 5402.32, 5402.42, 5402.43, 5402.52, 5402.62, 8415.00, 8702.10, 8703.90, 8706.21 and 8706.39 of the said First Schedule; (iii) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978); (iv) the additional duty of excise leviable under section 3 of the Add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have reproduced above the relevant provisions of Section 57AB. The Commissioner has concluded that the use of the word "said" (emphasised in the extract above) leads to the conclusion that credit of duty of one kind cannot be used towards payment of duty of another. He finds support for his conclusion from letter F. No. 345/18/2000-TRU, dated 14-12-2000 of the Ministry of Finance in reply to his letter. Paragraph 2 of the circular of the Board reads as follows :- The issue has been examined. The wording of Rule 57AB(2)(b)"2. states that the credit in respect of the AED (T TA), AED(GSI) shall be utilized only towards payment of duty of excise on the final products leviable under the said AED(T TA) Act or under the said AED(GSI) Act. The us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notification 21/99, dated 28-2-1999 reads as follows :- Credit of specified duty paid on the inputs may be utilised"2. for payment of duty of excise for any of the purposes mentioned in sub-rule (12) of Rule 57F of the said rules subject to the restrictions mentioned below, namely :- (a) credit of specified duty, in so far as it relates to duty paid under the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978) or the equivalent additional duty paid under Section 3 of the Customs Tariff Act, 1975 (51 of 1975), shall be utilised only towards payment of duty of excise leviable under the said Additional Duties of Excise (Textiles and Textile Articles) Act; (b) credit of specified duty, in so fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 2001 (14 of 2001); and (iv) the additional duty under Section 3 of the Customs Tariff Act, 1975 (51 of 1975), equivalent to the duty of excise specified under clauses (i), (ii) and (iii) above, shall be utilised only towards payment of duty of excise leviable under the said Additional Duties of Excise (Textiles and Textile Articles) Act, or under the said Additional Duties of Excise (Goods of Special Importance) Act, or the National Calamity Contingent Duty under the said Section 136 of the Finance Act, 2001 (14 of 2001) respectively, on any final products manufactured by the manufacturer or for payment of such duty on inputs themselves if such inputs are removed as such or after being partially processed." 7.It is not possi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een made clear by stating that the duty of each kind shall be used towards payment of duty of the same kind, by employing the word "respectively". The position prior to and subsequent to the period under consideration emphasises the point that a plain reading of the rules at the relevant time does not support the interpretation that the Commissioner places. The reference to the earlier and later position emphasises the distinction that exists in the rule under consideration and the different meaning made manifest in the other provision. If the intention were in fact to restrict the credit of one kind towards payment of duty of some kind, it could very easily and simply have been given effect as has been done in the two kinds of situation th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e courts to adopt any other hypothetical construction on the ground that such construction is more consistent with the alleged object and policy of the Act." With reference to taxing statute, the Supreme Court said in Commissioner of Sales Tax, U.P. v. Modi Sugar Mills Ltd. - AIR 1961 SC 1047, "In interpreting a taxing statute, equitable considerations are entirely out of place. Nor can a taxing statute be interpreted on any presumptions or assumptions. The court must look squarely at the words of the statute and interpret them. It must interpret a taxing statute in the light of what is clearly expressed; it cannot imply anything which is not expressed; it cannot import provisions in the statutes so as to supply any assumed deficiency." 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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