Separate excise levies require separate exemption; basic duty relief did not extend to additional duty of excise.

Exemption from basic excise duty does not automatically extend to additional duty of excise, because each levy operates separately under Rule 8 of the Central Excise Rules and Section 5A of the Central Excise Act. The article states that basic excise duty and additional duty of excise are distinct levies, so a specific exemption is required for the additional levy itself. In the absence of such exemption during the relevant period, the demand for additional duty was sustainable and the claim of automatic exemption was rejected.

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Issues: Whether exemption from basic excise duty automatically extended to additional duty of excise on processed fabrics, and whether the demand for additional duty was sustainable in the absence of a specific exemption.

Analysis: The exemption framework under Rule 8 of the Central Excise Rules and Section 5A of the Central Excise Act operates in respect of each levy. Basic excise duty and additional duty of excise are distinct levies, and exemption from one does not, by itself, carry over to the other. Since no exemption from additional duty of excise was available during the relevant period, the duty demand was in accordance with the statute.

Conclusion: The claim of automatic exemption was rejected and the demand for additional duty of excise was upheld.

Final Conclusion: The appeal failed because the law required a specific exemption for the additional levy, which was not in force for the relevant period.

Ratio Decidendi: Exemption from one excise levy does not automatically exempt another distinct levy unless the exemption is specifically granted for that levy.

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