Exemption notification and duty computation were held to have sufficient relation to excise duty rate for Special Bench jurisdiction.

Dispute under Notification No. 201/79-C.E. turned on whether eligibility for exemption had a sufficient relation to the rate of excise duty to attract Special Bench jurisdiction. The majority treated the notification as affecting computation of duty on the final product and held that the phrase "having relation to" covered both direct and indirect links with the rate of duty, so the matter was within the Special Bench and not confined to a Regional Bench. The minority viewed the issue as limited to duty credit or adjustment, with no question relating to the rate of duty, and therefore considered it a Regional Bench matter.

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Issues: Whether the dispute relating to eligibility to benefit under Notification No. 201/79-C.E. fell within the jurisdiction of the Special Bench under the provision governing appeals having relation to the rate of duty of excise.

Analysis: The majority held that the notification granted an exemption in a form affecting the computation of duty payable on the final product and, although not expressing a direct question of rate, it had sufficient relation to the rate of duty within the meaning of the jurisdictional provision. The expression "having relation to" was treated as enough to include indirect as well as direct connection with the rate of duty. On that basis, the matter was held not to be confined to a Regional Bench. The minority view held that the dispute concerned only the quantum of credit or adjustment and did not involve the rate of duty, and therefore should not be treated as a Special Bench matter.

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

Dissenting Opinion: The dissenting members held that the issue concerned only the amount of duty credit or adjustment under the notification and did not involve a question having relation to the rate of duty; therefore, jurisdiction lay with the Regional Bench.

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