TaxTMI 
TaxTMI 
2012 (3) TMI 69
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.... /1352/2002-B dated 25.10.2002. By the impugned judgment and order, the Tribunal has sustained the original order passed by the Adjudicating Authority. 2. The undisputed facts are: the appellant is a manufacturer of goods falling under Chapter Headings 32 and 84 of the first schedule to the Central Excise Tariff Act, 1985 ('the Act' for short). The description of the goods under those chapters for the purpose of disposal of this appeal may not be necessary, since we are called upon in this appeal to give a purposive construction to the language employed in the Notification No.175 /86-CE dated 1.3.1986 and Notification No.111 /88-CE dated 1.3.1988. 3. The Notification No.175 /86-CE dated 1.3.1986 exempts the excisable goods of the desc....
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....e taken into account." 4. A bare perusal of Sub-clause (a) of Clause 1 of the said Notification demonstrates that the goods enumerated in the Schedule to the Notification are exempted from payment of the central excise duty for the first clearances of the specified goods upto the aggregate value not exceeding rupees thirty lacs . Clause (a)(ii) provides that such clearances should not exceed rupees twenty lacs in any one of the chapter . The Notification also say that for the purpose of computing the aggregate value of the clearances under the said Notification, the value of clearances of any excisable goods which are exempted from the whole of duty by any other Notification shall not be taken into account. 5. Having seen the first No....
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....assessee has exceeded the aggregate value of Rs.30 lacs as specified in the Notification dated 1.3.1986 and, therefore, other clearances made by him would attract the levy of duty. It was also mentioned in the notice that since the assessee had paid the duty on the excess clearances of more than the value of Rs.30 lacs , the assessee is liable to pay duty with penalty. 10. In reply to the said show cause notice, the assessee had brought to the notice of the adjudicating authority that it is a manufacturer of items which would fall under chapter heading 84 of the Act and, therefore, the Notification dated 1.3.1988 requires to be applied and if it is applied the goods enumerated in the table appended to the Notification are exempted from t....
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....d to avail the benefit of the exemption Notification dated 1.3.1986. In the words of the Tribunal: "It is admitted fact that the Appellants have not availed of the exemption provided under Notification No.111 /88 while clearing the goods classifiable under Heading 84.37. It has not been brought on record that the Appellants have claimed any refund of the said duty. Accordingly, it cannot be claimed by them that the goods were exempted from payment of duty. The value of the clearance of goods falling under Heading 84.37 being cleared on payment of duty has to be taken into account by computing the value of clearances for the purpose of Notification No.175 /86." 13. The sum and substance of the reasoning of the Tribunal appears to be th....
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....quitable burden or progressive approach of fiscal provisions intended to augment State revenue. But once exception or exemption becomes applicable no rule or principle requires it to be construed strictly. Truly speaking liberal and strict construction of an exemption provision are to be invoked at different stages of interpreting it. When the question is whether a subject falls in the notification or in the exemption clause then it being in nature of exception is to be construed strictly and against the subject but once ambiguity or doubt about applicability is lifted and the subject falls in the notification then full play should be given to it and it calls for a wider and liberal construction. 5. ... A construction which results in in....