TaxTMI 
TaxTMI 
TaxTMI 
1989 (9) TMI 110
X X X X Extracts X X X X
X X X X Extracts X X X X
....rials manufactured from raw naphtha or any chemical derived therefrom on which the appropriate amount of duty of excise has already been paid, were given exemption of a certain percentage in the payment of excise duty. The respondents claimed the benefit of exemption from countervailing duty in respect of the said imported material. The appellants did not agree with the respondents, as according to them the conditions mentioned in the said notification were not complied with. The appellants, therefore, realised full duty payable, which was 42% on the value of the imported goods. If the exemption notification was applicable, the rate of duty would have been 27%. The respondents, therefore, filed a writ petition beint writ petition No. 1182 o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f Century Enka was patently not applicable to this notification. The respondents do not deny this position and that on the ratio of Ashok Traders, the impugned order of the learned Single Judge, will have to be overruled. 5. However, what is argued before us is somewhat different. Firstly, it was contended that the statement made by the Counsel on behalf of the appellants would amount to a concession, and having made the concession it is not open to the appellants to contend otherwise. Secondly, it is argued that in this petition there is a challenge to the condition imposed under the said notification itself and that, therefore, the case of Ashok Traders will not apply. 6. As regards the first contention, we are unable to accept the subm....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... said exemption notification. 7. In Ashok Traders it was emphasised that partial exemption from payment of duty as prescribed by the notification provided for two conditions. Firstly, the artificial or synthetic resins are manufactured from raw naphtha or any chemical derived therefrom, and secondly, on such raw naphtha or any chemical derived therefrom an appropriate amount of duty of excise has already been paid. When the matter was argued before the said Division Bench the petitioners' advocate had to concede that the second condition viz., the payment of excise duty on raw naphtha or chemical derived therefrom could never have arisen in respect of the said imported goods of H.D.P.E. inasmuch as the goods were imported and not manufactu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....w naphtha itself is excisable and since excise duty is already paid on it, it is fair that the Government issued an exemption notification that if such duty-paid raw naphtha is used for the manufacture of H.D.P.E., such manufacturers should not be liable for double duty. Therefore, if it can be shown that on the imported H.D.P.E. excise duty has already been paid on the raw material naphtha and the chemicals derived therefrom, such an importer would get the benefit of exemption notification. Miss Wandrewala submits that in the case of imported H.D.P.E. naturally there could be no question of payment of excise duty on raw naphtha and, therefore, there could be no exemption. Undoubtedly, that will be the position. Her argument in substance is....