Excise duty rate jurisdiction: credit under an exemption notification was held to fall within Special Bench jurisdiction.

Appeals concerning eligibility for credit under Notification No. 201/79-C.E. were treated as falling within Special Bench jurisdiction under section 35D(2) because the dispute had a sufficient relation to the rate of duty of excise. The provision was read broadly to cover questions connected with assessment, including indirect as well as direct effects on the duty payable on finished goods. Although the notification operated through credit of duty paid on inputs against duty on finished goods, the majority considered that the issue still affected the rate at which excise duty was ultimately payable. The appeals were therefore held to lie before the Special Bench rather than the Regional Bench.

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Issues: Whether the appeals concerning eligibility for benefit under Notification No. 201/79-C.E. dated 4-6-1979 fell within the jurisdiction of a Special Bench under section 35D(2) of the Central Excises and Salt Act, 1944.

Analysis: The jurisdictional provision covers appeals relating, among other things, to the determination of any question having a relation to the rate of duty of excise or to the value of goods for assessment. The majority held that, although the notification granted credit of duty paid on inputs against duty on finished goods, the dispute ultimately affected the rate at which duty was payable on the finished goods and therefore had a sufficient relation to the rate of duty of excise. The expression used in the provision is broad and includes questions having indirect as well as direct connection with the rate of duty.

Conclusion: The appeals were held to fall within the jurisdiction of the Special Bench and not the Regional Bench.

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