CHOICE LABORATORIES STATE Vs. COLLECTOR OF C. EX.
LAWS(CE)-1991-1-25
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on January 24,1991

Choice Laboratories State ... Appellant
VERSUS
COLLECTOR OF C. EX. Respondents

JUDGEMENT

G.SANKARAN,PRESIDENT - (1.) BY the impugned orders, the Collector of Central Excise (Appeals), Bombay, upheld the two orders dated 14 -4 -1986 passed by the Assistant Collector of Central Excise (1) denying the benefit of excise duty exemption to the appellants in terms of Central Excise Notification No. 140/83 dated 5 -6 -1983 during the financial year 1985 -86 on the ground that the value of clearance of all excisable goods by them during the preceding year had exceeded Rs. 20 lakhs, the cut -off point laid down in the eligibility criterion and (2) demanding duty on the above ground on the clearances effected during the period from 1 -8 -1985 to 31 -8 -1985.
(2.) BY Notification No. 46/81 -C.E., dated 1 -3 -1981 issued under Rule 8(1) of the Central Excise Rules, 1944, the Central Government exempted from excise duty all goods except sandal oil falling under Item No. 68 of the CET (the First Schedule to the Central Excises and Salt Act, 1944), other than goods manufactured in a factory (as defined in the Factories Act, 1948). This notification was superseded by Notification No. 178/85 dated 1 -8 -1985.
(3.) NOTITICATION No. 140/83 exempted cosmetics and toilet preparations, falling under Item 14F of the CET cleared during any financial year from the whole of the duty leviable thereon on the first clearances valued upto Rs. 5 lakhs and from 50% of the duty leviable on the next clearances upto Rs. 10 lakhs. There were several conditions laid down in the notification. The condition with which we are concerned in the present case read: - "Nothing contained in this notification shall apply to a manufacturer - (i) if the aggregate value of clearances of all excisable goods by him or on his behalf, for home consumption, from one or more factories, during the preceding financial year, had exceeded rupees twenty lakhs;" There is an Explanation in the notification which is relevant to the aforesaid condition. It reads : - "Explanation II. - For the purposes of computing the aggregate value of clearances under this notification, the clearances of any excisable goods, which are exempted from the whole of the excise duty leviable thereon by any other notification (not being a notification where exemption from the whole of the duty of excise leviable thereon is granted based upon the value or quantity of clearances made in a financial year) issued under Sub -rule (1) of Rule 8 of the Central Excise Rules, 1944 and for the time being in force, shall not be taken into account." The facts of the case, in brief, are that the appellants filed a declaration claiming exemption from Central Excise duty on Talcum, Powder falling under Item No. 14F, CET, in terms of Notificatioin No. 140/83. This claim was allowed by the Assistant Collector on 29 -7 -1985. On adjudication of the show cause notice issued later, the Assistant Collector withdrew the exemption on the ground that the clearance value of Tooth Powder falling under Item No. 68, CET and exempted from duty under Notification No. 46/81 during 1984 -85 should also be included in computing the aggregate value of all excisable goods during 1984 -85 (the preceding year). This was with effect from 1 -8 -1985. The Assistant Collector also demanded Rs. 81,344.22 towards duty on the clearances effected during 1985 -86 i.e. from 1 -8 -85 to 31 -8 -85. The Assistant Collector's reason for doing so was thus: Notification No. 46/81 dated 1 -3 -1981 under which Tooth Powder was exempted was superseded by Notification No. 178/85 dated 1 -8 -1985. In view of this, the Assistant Collector held that since the clearances of all excisable goods, including Tooth powder, had exceeded the Rs. 20 lakhs limit laid down in Notification No. 140/83 during 1984 -85, the appellants were not eligible for the benefit of the said notification with effect from 1 -8 -85. in appeal, the Assistant Collector's orders were upheld. Hence these appeals.;


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