TaxTMI 
TaxTMI 
1989 (6) TMI 177
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....during the preceding financial year i.e. from 1-4-1977 to 31-3-1978 and the value of their Plant & Machinery being less than Rs. 10 lakhs, their goods were, therefore, exempt from payment of Central Excise duty by virtue of Notification No. 176/77-C.E., dated 17-6-1977. 2. This contention was not accepted by the Assistant Collector on the ground that the total value of clearances of all excisable goods manufactured by the respondents during the period falling under Central Excise Tariff Item 34-A and Tariff Item 68 had exceeded Rs. 30 lakhs and they were not entitled for exemption. Accordingly, the respondents were asked to pay duty of Rs. 78,075.98p. 3. When the matter went up in appeal, the Collector of Central Excise (Appeals) Bomb....
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....industrial unit in which the goods, under clearance, are manufactured, is not more than rupees ten lakhs: Provided that this exemption shall not be applicable to a manufacturer if the total value of all excisable goods cleared by him or on his behalf in the preceding financial year had exceeded rupees thirty lakhs: Provided further that the exemption contained in this notification shall apply to the first clearances for home consumption by, or on behalf of, the manufacturer referred to in this notification, from one or more factories upto a value not exceeding rupees thirty lakhs during a financial year subsequent, to 1977-78, and upto a value not exceeding rupees twenty-four lakhs during the period commencing on the 18th day of June,....
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....d. The problem arises with reference to the proviso which now follows. It clearly provides that the exemption shall not be applicable to a manufacturer if the total value of all excisable goods cleared by him or on his behalf in the preceding financial year had exceeded Rs. 30 lakhs. This proviso has been interpreted by the learned Collector (Appeals) to be limited to the value of all excisable goods cleared for home consumption or in other words, he has held that for this computation, goods which are exported have to be excluded. We are afraid there is nothing at all in the relevant proviso to support this interpretation. In fact, and, to the contrary, the proviso specifically emphasises that the total value of all excisable goods cleared ....
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...., we set aside the impugned order and allow these appeals of the department. 9. [Per: P.C. Jain, Member (T)]. - I have carefully gone through the order proposed by learned Brother Shri K. Prakash Anand but I regret respectfully that I am unable to pursuade myself with the conclusion reached therein. 10. Notification 176/77, which is the subject of interpretation, has already been set out in para 5 by the learned Brother. It is to be noted that the main portion of the said notification grants an exemption to goods falling under Tariff Item 68 of the Central Excise Tariff cleared for home consumption on or after the first day of April in any financial year. The 1st proviso to this notification which is the focus of the interpretation in....
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....or the respondents. The settled rule of construction of proviso is what has been stated by the learned advocate. In Principles of Statutory Interpretation by Justice G.P. Singh (4th edition) it has been stated at page 123 as follows :- "The language of a proviso even if general is normally to be construed in relation to the subject-matter covered by the section to which the proviso is appended. In other words normally a proviso does not travel beyond the provision to which it is a proviso. 'It is a cardinal rule of interpretation,' observed BHAGWATI, J., 'that a proviso to a particular provision of a statute only embraces the field which is covered by the main provision to which it has been enacted as a proviso and to no other'." Appl....