Customs, Excise and Gold Tribunal - Delhi
Collector Of Central Excise vs Harita Rubber Products (P) Ltd. on 5 February, 1992
Equivalent citations: 1993(66)ELT233(TRI-DEL)
ORDER G.P. Agarwal, Member (J)
1. This appeal is directed against the impugned Order-in-Appeal passed by the Collector of Central Excise (Appeals), Madras.
2. Shortly put, the facts of the case are that the respondents are manufacturer of rubber moulded components falling under erstwhile T.I, No. 68. They were availing exemption under Notification No. 77/85, dated 17-3-1985 as amended by Notification No. 118/85, dated 8-5-1985 for the year 1985-86. They have been clearing the said rubber moulded components to various customers under 'nil' rate of duty and part of such components by following the procedure laid down in Chapter X Procedure to original equipment manufacturers. However, the Assistant Collector vide his adjudication order denied the benefit of the said Notification holding that exemption under Notification No. 167/79 can be allowed after the company crosses clearance limit of Rs. 20 lakhs as otherwise, they will be denied the benefit available. On appeal by the respondents, Collector (Appeals) set aside the said Order of the Assistant Collector and held that in view of the Explanation II(a) to Notification No. 77/85 the goods which were cleared free of duty i.e. to say wholly exempted from payment of duty under Notification issued under Rule 8 of the Central Excise Rules are not to be taken into account in computing the clearance value as stated in Notification No. 77/85. Hence the present appeal by the Revenue.
3. When the case was called, the respondents instead of entering into appearance, have requested for a decision on merits in the light of the submissions made by them in writing. In their written submissions, they have cited the cases of Collector of Central Excise v. Balraj Paper & Straw Board Mills -1990 (47) E.L.T. 139 (Tri.); Indye Chemicals -1986 (25) E.L.T. 318 (Tri.) and India Sugars and Refineries - 1983 (12) E.L.T. 209 (Ker.) wherein, inter alia, it was held that where two Notifications are issued separately, the benefit thereof should be available to the assessee separately unless there is any specific provision to the contrary.
4. Arguing on behalf of the appellants, Shri L.N. Murthy, learned JDR reiterated the grounds mentioned in the appeal to the effect that if the value of clearances under Notification No. 167/79 is not excluded for the purpose of computing the value of clearances under Notification No. 77/85-C.E., there is likelihood of large scale units, avoiding payment of duty by supplying the bulk of the specified goods in terms of Chapter X Procedure as OE equipment under Notification No. 167/79-C.E. On being pointed out by the Bench as to how the said apprehension can be taken into consideration while interpreting the Notification, he has nothing to add.
5. We have considered the submissions. The Collector (Appeals) has recorded finding which may be re-produced with advantage as follow :-
"I have carefully considered the submissions of the appellants'. Explanation II to the Notification quoted above clearly states that the same should not be taken into account at all. Therefore, the Assistant Collector's contention, in the impugned order, that it is necessary to allow exemption under Notification 167/79 after the company crosses clearance limit of Rs. 20 lakhs is not at all correct. This according to the Assistant Collector is due to the harmonious reading of the notification and also considering the intention of the Government in Notifications but to interpret the words used therein. Therefore, the order of the Assistant Collector is not correct. The same is set aside and the appeal is allowed."
6. Thus apart from the fact that if an assessee is entitled for the benefit of two separate Notifications, we agree with the said finding of the Collector (Appeals) that in terms of the Explanation II(a) to Notification No. 77/85 respondents were entitled for benefit as claimed.
7. In the result, the appeal is rejected being devoid of any merit.