TaxTMI 
TaxTMI 
1981 (2) TMI 88
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....d fabrics. For payment of duty on the cotton yarn manufactured in their factory and utilised in the further manufacturer of fabrics they were availing the facility of Rules 96V, 96W and 96X of the Central Excise Rule, 1944, as per which duty on the yarn could be paid at the fabric stage along with the duty on the fabrics. The lower authorities have held that for the purpose of determining the assessable value of the fabrics the duty paid on the yarn must be deemed to be a part of the assessable value of the fabrics. They have accordingly confirmed certain demands for differential duty under the provisions of Rule 10 of the Central Excise Rules, 1944 as it existed prior to the amendment of the Rule by Notification No. 267/77, dated 6-8-1977.....
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....at the time of clearance of the pump. He also referred to Section 4(4) (d) of the Central Excises and Salt Act, 1944, which provides that the assessable value does not include the amount of duty of excise, sales tax and other taxes, if any, payable on such goods. 5. His next contention was that demands for differential duty similar to that of the petitioners goods were issued on several mills and on representations made by the mills to the Central Board of Excise & Customs, instructions were issued to the lower authorities not to enforce the demands and later, exemption Notification 99/77, dated 31-5-1977, was issued exempting the component of value of fabrics on account of the duty on the yarn from payment of central excise duty. 6. ....
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....absence of any such contention the process of manufacture cannot be considered as a continuous one as was the case in the cases covered by the judgments. In fact in the case of J.K. Synthetics the court pointed out that, if on the other hand any excisable goods are produced in a factory in an identification form and are removed for being used within the factory they would be chargeable to duty. It would, therefore, follow that the yarn produced by the factory and utilised in the further manufacture of fabrics would be leviable to duty. 8. Government find no force in the contention either that the duty on the yarn should not form a part of the assessable value of the fabrics. Admittedly yarn comes into existence at a stage prior to the st....
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....a notification cannot have retrospective effect. 10. The last submission of the petitioners that the demands were time-barred also fails. They have contended that the demands have been confirmed under the provisions of Rule 10 of the Central Excise Rules, which was repealed by Notification No. 267/77, dated 6-8-1977 and the demands having been confirmed after the old Rule 10 was repealed, the old Rule 10 could not be invoked in confirming the demands because the amended Rule 10 did not have any saving clause to cover past cases. Govt. observe that the right of the state to demand duty short levied or erroneously refunded under the repealed Rule 10 and the corresponding obligations and liability of the person concerned can be said to have....