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1996 (5) TMI 85 - SC - Central ExciseWhether the benefit of exemption given to footwear can be claimed by the manufacturer even where the wholesale price of the footwear exceeds the limit of the exemption specified in the notification? Held that:- The notification by exempting footwear upto the value of ₹ 60 from duty of excise has not removed "footwear" from the list of excisable goods in the first Schedule. It has in effect reduced the ad valorem duty of 10 per cent payable on such footwear upto the value of ₹ 60 to nil. The assessee has adopted a scheme which can easily be seen through. After valuing the footwear at less than ₹ 60.00, he has fixed the price at above ₹ 60.00. He is entitled to make as much profit as he can. But he has tried to claim deduction of a part of the profit as excise duty payable for the goods. In order to claim this deduction, the assessee will have to show that the `value' of the goods became more than ₹ 60.00 per pair because of inclusion of excise duty. If that cannot be done, there is no question of deducting any duty payable on the goods manufactured by the assessee. The conundrum spoken of by Mr. Shanti Bhushan does not exist. Once the principle underlying the mechanism of valuation of excisable goods is borne in mind, this becomes a straightforward case. No intriguing conundrum perplexes our mind. We can easily behold what lies behind the assessee's scheme. Appeal allowed.
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