UNION OF INDIA Vs. GANESH METAL PROCESSORS INDS
SUPREME COURT OF INDIA (FROM: ANDHRA PRADESH)
UNION OF INDIA
GANESH METAL PROCESSORS INDUSTRIES
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(1.)These appeals are against the order dated 8.9.1994 passed by the High Court of Andhra Pradesh at Hyderabad. The question involved in these appeals is whether the respondents were entitled to the benefit of notification no. 1 of 1993 dated 28th February, 1993. By the said notification, exemption is granted to first clearance of specified goods upto a particular value, provided in the previous year, there has been no clearance of goods beyond the aggregate value of Rs. 200 lacs. Further qualification which is relevant for our purpose, reads as follows :-
"For the purposes of computing the aggregate value of clearances under this notification, the clearances of any excisable goods, which are chargeable to nil rate of duty or, which are exempted from the whole of duty of excise leviable thereon by any other notification (not being a notification where exemption from the whole of 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 said rules of sub-section (1) of section 5 A of the said Act, shall not be taken into account. "
(2.)Thus, for the purposes of computing the aggregate value of clearances, the only goods which are not to be taken into account are those (a) which are chargeable to nil rate of duty and (b) which are exempted from whole of the duty of excise leviable under any other notification. Admittedly the goods are not those which were chargeable to nil rate of duty. The question before this Court is whether the goods of the respondents are exempted from whole of the excise duty by virtue of notification no. 202 of 1988.
(3.)The relevant portion of notification no. 202 of 1988 reads as follows:-
"Exemption to certain final products of iron and steel made from specified input materials and falling under chapter 72 or 73 or heading 84.54 - In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, and in supersession of the notification of the government of India in the ministry of finance (department of revenue) no. 90/88 - central excises, dated the 1st March, 1988, the central government hereby exempts goods of the description specified in column (3) of the table hereto annexed (such goods being hereinafter referred to as "final products") and falling within chapter 72, chapter 73 or heading no. 84.54 of the schedule to the Central Excise Tariff Act, 1985 (5 of 1986) , from the whole of the duty of excise leviable thereon which is specified in the said schedule: provided that such final products are made from any goods of the description specified in the corresponding entry in column (2) of the said table (such goods being hereinafter referred to as "inputs") and falling within the chapter 72 or chapter 73 of the said schedule or which the duty of excise leviable under the said schedule or the additional duty leviable under the Customs Tariff Act, 1975 (51 of 1975) , as the case may be, has already been paid: provided further that no credit of the duty paid on the inputs has been taken under rule 56 A in rule 57 A of the said rules. Explanation.- For the purposes of this notification, all stocks of inputs in the country, except such stocks as are clearly recognisable as being non-duty paid, shall be deemed to be the inputs on which duty has already been paid. "at this stage, two admitted facts need to be set out viz. (a) the goods fall under serial no. 2 A of the table to the notification no. 202 and (b) the respondents had taken credit under rule 57 A and had not paid duty on those goods.
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