1991 (1) TMI 139 - HC - Central Excise

Interpretation of 'specified goods' for excise duty exemption under Notification No. 198/76

THE FORT WILLIAM CO. LTD. Versus UNION OF INDIA

The court interpreted the phrase 'specified goods' in Notification No. 198/76 dated June 16, 1976, for excise duty exemption. The petitioner, a wire rope ... Excess Production Rebate - Base period and base clearance - Computation of Issues: Interpretation of the phrase 'specified goods' in Notification No. 198/76 dated June 16, 1976 for excise duty exemption.Detailed Analysis:1. The dispute in this case revolves around the interpretation of the term 'specified goods' in Notification No. 198/76 dated June 16, 1976, which granted exemptions in excise duty for certain goods, including wire ropes.2. The petitioner, a manufacturer of wire ropes since 1962, claimed the computation of base period and clearance under Paragraph 2(2)(b) of the notification. The petitioner sought refunds for excise duty paid in the years 1976-77, 1977-78, and 1978-79.3. The excise authorities refused the refund for years other than 1976-77, stating that the petitioner, having manufactured wire goods before 1973, was entitled to claim exemption under Paragraph 2(2)(c) instead of 2(2)(b) of the notification.4. The petitioner argued that the goods manufactured became excisable for the first time on April 1, 1973, making them 'specified goods' as per the notification, and thus eligible for exemption under Paragraph 2(2)(b).5. The court held that the phrase 'specified goods' was distinct from general goods and referred to excisable goods specified in the First Schedule of the Central Excises & Salt Act, 1944. The court interpreted the notification in favor of the petitioner, resolving any ambiguity in favor of the assessee.6. The court also noted that once a writ petition had been entertained, it would not be just to reject it based on the availability of an alternative remedy, citing precedent in support of this principle.7. Ultimately, the court found in favor of the petitioner, making the rule absolute and granting relief in interpreting the notification in a manner beneficial to the manufacturer. The court did not delve into other issues raised by the petitioner, given the finding on the interpretation of the notification.8. The judgment concluded with no order as to costs, and the parties were directed to receive a Xerox copy of the operative part of the judgment on payment of requisite costs for further action.