1983 (2) TMI 308 - AT - Central Excise

Summary

Issues: Interpretation of exemption notification No. 213/63-Central Excises, as amended by notification No. 29/67-C.E.

Analysis:

1. Background and Dispute Overview:
The case involved a dispute regarding the interpretation of exemption notification No. 213/63-Central Excises, as amended by notification No. 29/67-C.E. The appellants claimed set-off of crude copper stage duty at the revised rate of &8377; 4,000/- per M.T. from 1-8-1974. The dispute was divided into two periods: 13-8-1974 to 11-11-1974 and 18-11-1974 to 31-1-1975.

2. Appellants' Arguments:
The appellants argued that the phrase "duty payable" in the exemption notification should be interpreted as duty payable at the time of grant of set-off, not at the time of purchase of crude copper. They contended that the demand for the second period was time-barred and that the Assistant Collector's approval of the classification list should be final.

3. Department's Arguments:
The Department asserted that "duty payable" referred to duty payable at the time of purchase of crude copper. They argued that the Superintendent had the authority to issue a demand notice, and the modification of Rule 10 did not repeal it.

4. Tribunal's Decision:
The Tribunal analyzed the notification's language and concluded that "duty payable" in the second paragraph referred to duty payable at the time of grant of the exemption or set-off, not at the time of purchase. They emphasized that the notification should be applied at the time of assessing excisable goods for clearance. As a result, the Tribunal allowed the appeal in favor of the appellants.

5. Conclusion:
The Tribunal's decision clarified the interpretation of the exemption notification, resolving the dispute in favor of the appellants. The judgment highlighted the importance of applying the notification at the time of assessing excisable goods for clearance, leading to the allowance of the appeal with consequential relief to the appellants.