1987 (2) TMI 66

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....e 8 of the Central Excise Rules, exempted, "Tyres for motor vehicles falling under sub-item (1) of Item No. 16 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944) from so much of the duty of excise leviable thereon as is in excess of fifty-five per cent ad valorem." 2. Thereafter on June 16, 1977, another notification was issued in the following terms : In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944 the Central Government hereby exempts all excisable goods (hereinafter referred to as the "said goods") on which the duty of excise is leviable and in the manufacture of which any goods falling under Item No. 68 of the First Schedule to the Central Excises and Salt....

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....produced in any factory which commenced production of the specified goods for the first time on or after the 1st day of April, 1976, Subject to the conditions that :- xxx    xxx    xxx    xxx    xxx    xxx xxx    xxx    xxx    xxx    xxx    xxx  xxx" 4. There is no controversy regarding evaluation. According to the assessee as well as the department effect has first to be given to the notification dated August 1, 1974 and the duty calculated in terms of that notification. There is also no controversy at this stage. The controversy begins thereafter. According to the department....

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....was already in force, had to be given effect before giving effect to the notification dated July 14, 1978. This was the submission of Shri A. Subba Rao, learned Counsel for the department and it is difficult to see any escape from it. The case upon which reliance was placed by Dr. Singhvi does not appear to have any relevance to the question at issue. There, the court was concerned with the determination of the assessable value and not with the present question relating to the order of priority in which the notifications granting exemption from duty had to be applied. There, what the court decided was that Excise Duty cannot be computed without proper determination of the assessable value namely assessable value exclusive of permissible ded....