1997 (5) TMI 218

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....s production incentive rebate in terms of Notification 116/84 issued under Rule 56AA of Central Excise Rules. The Notification has been issued being part of a scheme of excise duty relief to encourage higher production. It was designed to encourage production by granting relief in respect of goods specified in the Table attached to the Notification produced in excess of production in a selected base year. The scheme was announced in the Finance Minister's Budget Speech of 1982. On scrutiny of the claim the jurisdictional Assistant Collector found that the claim was hit by condition B IV(a) of the Notification. This condition reads as follows :- "iv. No credit shall be allowed in respect of a factory from which clearances of the specified g....

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....eared specified goods from the factory earlier to 1-4-1981 as they had cleared vehicles falling under Item 34-I(3) in 1980 which is also specified goods for the purpose of the notification. It was urged, citing case law, that the notification which was essentially designed to encourage high production should not be construed in such a manner as to defeat its objective. 4. Shri D. Gurnani, ld. D.R. contended that the non-fulfilment of condition IV(a) of the notification would take the appellants claim away from the purview of the incentive rebate. The condition has to be satisfied with reference to the particular goods i.e. of Item 34-I(2) for which the appellants filed the claim. Admittedly, the first clearance of these goods was only....