1989 (2) TMI 195

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.... correct meaning of the words "at the rate specified in the said First Schedule......" occurring in the Notification No. 259/83, dated 15-10-1983. 2. The facts that gave rise to these questions are, briefly, that the appellants among other goods manufactured vanaspati falling under Tariff Item 13 of the Central Excise Tariff at the relevant time. The Central Government by Notification No. 24/65-CE as amended by Notification No. 17/69 granted unconditional exemption to vanaspati products from payment of Excise duty in excess of 5% ad valorem. The Central Govt. on 15-10-1983 issued another exemption Notification No. 259/83 under Rule 8 granting exemption to vegetable product produced either solely from indigenous rice bran oil (RBO) mixed ....

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....e of duty; that is to say, the rate after the exemption notification is applied. In support of this argument the learned . Advocate cited a judgment of the Supreme Court in Orient Weaving Mills (P) Ltd. and others v. Union of India and others [1978 E.L.T. (J 311]. 5. Shri Sunder Rajan, the learned JDR accepted that two independent Notifications can be availed of as has been held by the Tribunal in the case law cited by the learned Advocate. He, however, argued that the words used in Notification No. 259/83, namely, "from the duty of excise leviable thereon under the said act at the rate as specified in the First Schedule ......" would mean that rebate would be available on the rate specified in the First Schedule and not with reference t....

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....gested by the revenue would lead to an anomalous situation inasmuch as availing of the notification would mean payment of higher rate of duty because under Notification No. 24/65 as amended by Notification 17/69 vegetable product is unconditionally exempted from the payment of duty exceeding 5%. The duty payable on the tariff rate less the reduction Notification No. 259/83 would be more than 5%. Therefore, it is quite clear that this could not have been the intention of the Government who, as is evident from the wording of the Notification, wanted to encourage the use of indigenous rice bran oil or mixture of such oil with other oils. 8. The Supreme Court in Orient Weaving Mills (P) Ltd. (supra) clearly observed that "Thus, it is manifes....