TaxTMI 
TaxTMI 
2002 (3) TMI 72
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....ituated at Madras, Goa and Kottayam. The petitioner's factory at Goa manufactures tyres only and the factory at Kottayam manufactures only tubes. The factory at Madras manufactures both tyres and tubes. 3.It is stated in the petition that duty of excise is leviable on tyres and tubes under Tariff Item No. 16 of the First Schedule of the Central Excises and Salt Act, 1944 (for short 'the Act'). Under sub-item (1) of Tariff Item No. 16 excise duty is leviable on tyres at the rate of 60% ad valorem. The Central Government, under Notification dated 1st August, 1974 being Notification No. 123 of 1974 in exercise of powers conferred under Rule 8 of the Central Excise Rules, 1944 (for short the 'Rules') exempted tyres and tubes for motor vehicles....
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....ities in order to encourage higher production of such commodities and to give incentives to new units. 5.On 8th February, 1977 the Central Government issued further Notification No. 20/77 according to which a manufacturer who has more than one factory and if in respect of one of its factories it has not been able to reach the base clearances in respect of such factory on account of power cut, flood or other natural calamities, the Collector of Central Excise having jurisdiction over such factory is empowered to de-link that factory from other factories after considering representations received from the manufacturers. Based on that Notification, the petitioner submitted application on 11th February, 1977 to the Collector of Central Excise....
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....ded to the petitioner for the whole financial year in question, namely from 1st April, 1976 to 31st March, 1977 and should not have been restricted to the period from 8th February, 1977 to 31st March, 1977. 8.The question which arises for consideration therefore is as to whether the amendment Notification dated 8th February, 1977 would apply retrospectively i.e. from the date when the first Notification dated 16th June, 1976 was issued or it would apply prospectively i.e. from the date of its issue on 8th February, 1977. 9.As noted above, the Notification dated 16th June, 1976 was issued under Rule 8(1) of the Central Excise Rules to give 25% exemptions from the payment of excise duty on the articles listed in the table at the end of the ....
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....is factories beyond the base clearances in respect of such factory, then in relation to such manufacturer the clearances from such factory shall not be taken into account and shall be excluded both for the purposes of calculating base clearances and clearances in excess of the base clearances in such year." 10.As mentioned above, on application dated 11th February, 1977 although the request of the petitioner for de-linking Madras factory from Goa was allowed, this benefit has been given with effect from 8th February, 1977, i.e., the date of issuing of the amendment Notification. The Appellate Authority in its order dated 6th September, 1978 has held that the exemption can operate only from the date of issuance of Notification dated 8th Feb....