TaxTMI 
TaxTMI 
1994 (11) TMI 214
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....led the present appeal. 2. The respondents were engaged in the manufacture of zinc oxide, falling during the relevant time, under Item No. 65 of the Ist Schedule to the Central Excises and Salt Act, 1944 (hereinafter referred to as the `Tariff'). Item No. 65 of the Tariff covered rubber processing chemicals - (1) Accelerators; (2) Anti-oxidants. They were availing of exemption under Notification No. 77/73-C.E., dated 1-3-1973 which provided exemption to inorganic accelerators falling under Item No. 65 of the Tariff, from the whole of the duty of excise leviable thereon. `Inorganic accelerators' were explained to mean accelerators which were inorganic compounds, such as zinc oxide and magnesium oxide. With effect from 19-1-1980 vide ....
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....Chapter X Procedure be followed by the manufacturer, the order of the Collector of Central Excise (Appeals), New Delhi was not correct. He pleaded for acceptance of the Revenue's appeal. 5. Shri J.S. Agarwal, the learned Advocate referred to the provisions of Notification No. 77/73-C.E., dated 1-3-1973 as amended by Notification No. 1/80-C.E., dated 19-1-1980, and submitted that the amending notification is dated 19-1-1980, and that the procedural change did not come to the notice of the manufacturer immediately. The period involved in these proceedings is from 19-1-1980 to 22-2-1980. The goods were supplied to the same parties after 19-1-1980 to whom the goods were being supplied prior to the procedural change. There was no change in as....
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.... Notification No. 1/80-C.E. "In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue and Insurance) No. 77/73-Central Excises, dated the 1st March, 1973, namely :- In the said notification, before the explanation, the following proviso shall be inserted, namely :- "Provided that nothing in this notification shall apply to Zinc Oxide unless - (i) the Assistant Collector of Central Excise is satisfied that the Zinc Oxide is intended for use in the manufacture of rubber; and (ii) the procedure set out in Chapter X of the sai....
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....or of Central Excise is satisfied that the goods concerned are intended for use in the manufacture of rubber, glass, pottery and other ceramic goods, and (ii) the procedure set out in Chapter X of the Central Excise Rules, 1944, is followed in the matter of obtaining remission of duty on such goods." With effect from 19-1-1980, as a measure of rationalisation, zinc oxide, whether classifiable under Item No. 14 or Item No. 65, were accorded the same treatment. 9. Chapter X Procedure of the Rules prescribes a detailed procedure to be followed both by the manufacturer of the specified excisable goods, and by the person wishing to obtain remission of duty on such goods. The person wishing to obtain the remission of duty is re....
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....the unit and recorded on the RG 1 that they should follow the procedure under Chapter X for availing of the exemption. (Refer para 4 of the Order-in-Appeal). 11. In this case the amending notification was issued on 19-1-1980. The show cause notice is dated 27-3-1980. The period involved is from 19-1-1980 to 22-2-1980. There is no allegation that the goods were not the rubber processing chemicals (`Inorganic accelerators'), or were not classifiable under Item No. 65 of the Tariff, or the goods were not used in the manufacture of rubber. They were supplied to the same parties to whom the goods were being supplied earlier. There were 13 gate passes involved and out of these admittedly in 6 cases, the goods were directly consigned to the man....