- (1.) THIS appeal is against the order dated 12-1-1998 of the .Customs, Excise and Gold (Control) Appellate Tribunal.
(2.) BRIEFLY stated, the facts are as follows: Prior to 1-3-1979, duty was levied on unmanufactured tobacco. With effect from 1-3-1979, that duty was withdrawal. A notification bearing No. 30/79-CE dated 1-3-1979 was issued which, inter alia, provided as follows: "In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, read with sub-section (3) of Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) (hereinafter referred to as the Additional Duties of Excise Act), the Central Government hereby exempts cigarettes of the description specified in column (1) of the table hereto annexed, and falling under Sub-Item 11(2) of Item 4 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944) (hereinafter referred to as the Central Excises Act), from so much of the duty of excise leviable thereon both under the Central Excises Act and the Additional Duties of Excise Act, as is in excess of the duty specified in the corresponding entry in column (2) thereof. JUDGEMENT_704_3_2004Html1.htm Provided that (i) if it is proved to the satisfaction of an officer not below the rank of an Assistant Collector of Central Excise that any cigarettes have been manufactured wholly from unmanufactured tobacco falling under Sub-Item 1(1) or Sub-Item 1(4) of Item 4 of the First Schedule to the Central Excises Act, on which the appropriate amount of duty of excise as leviable thereon on or before 28-2-1979 both under the Central Excises Act and the Additional Duties of Excise Act has already been paid, the duty of excise leviable on such cigarettes as specified in the table annexed to this notification, shall be reduced by an amount equivalent to the amount calculated at the rate of five rupees and fifty paise per one thousand cigarettes;" The appellants claim that in respect of cigarettes manufactured from duty-paid tobacco, they were entitled to reduce the amount of duty calculated at the rate of Rs 5.50 per thousand cigarettes at the stage when the duty is payable. According to the respondent the reduction of Rs 5.50 is to be allowed at the stage when the assessable value is to be worked out. All the authorities below have held against the appellants. It has been held that the reduction of Rs 5.50 has to be at the stage when the assessable value is being worked out.
(3.) IT is submitted that on this interpretation full effect to the reduction of Rs 5.50 is not being allowed. IT is submitted that on such an interpretation the manufacturer effectively gets benefit of only Rs 1.57. In support of this submission reliance is placed on calculations which read as follows: Determination of assessable value of cigarettes from selling price by manufacturer to W/B by using duty-paid raw tobacco or fully exempt raw tobacco: On behalf of the appellants it is submitted that the notification has to be read in terms of Section 4(4)(d) of the Central Excise Act which reads as follows: "4. Valuation of excisable goods for purposes of charging of duty of excise. (1) Where under this Act, the duty of excise is chargeable on any excisable gpods with reference to value, such value shall, subject to the other provisions of this section, be deemed to be * * * (4) For the purposes of this section, * * * (d) 'value', in relation to any excisable goods, * * * Explanation. For the purposes of this sub-clause, the amount of the duty of excise payable on any excisable goods shall be the sum total of (a) the effective duty of excise payable on such goods under this Act; and (b) the aggregate of the effective duties of excise payable under other Central Acts, if any, providing for the levy of duties of excise on such goods, and the effective duty of excise on such goods under each Act referred to in clause (a) or clause (b) shall be, (0 in a case where a notification or order providing for any exemption [not being an exemption for giving credit with respect to, or reduction of duty of excise under such Act on such goods equal to, any duty of excise under such Act, or the additional duty under Section 3 of the Customs Tariff Act, 1975 (51 of 1975), already paid on the raw material or component parts used in the production or manufacture of such goods] from the duty of excise under such Act is for the time being in force, the duty of excise computed with reference to the rate specified in such Act in respect of such goods as reduced so as to give full and complete effect to such exemption; and (ii) in any other case, the duty of excise computed with reference to the rate specified in such Act in respect of such goods." ;