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1996 (10) TMI 86 - SUPREME COURTWhether the question of clearance of goods could only arise if the excise duty became leviable? Whether the goods manufactured by the assessee were not dutiable before 1-3-1974 therefore, no question of clearance of the goods manufactured by the appellant could arise before that date? Held that:- Rule 9 of the Central Excise Rules provided for calculation of duty and value of the goods at the time of removal of the goods from the factory or a warehouse. The notification No. 198/76-C.E., dated 16-6-1976 deals with clearances of specified goods, not removal of excisable goods. The goods which have been specified in the Notification will qualify for the relief given in the Notification. The goods of the appellant have been specified in the Notification and as such qualified for the exemption. Therefore, clearances in the context of this Notification cannot have any special meaning. It does not signify any special sense nor can it be equated with removal of dutiable goods from a factory under the Central Excise Act. The manner of calculation cannot take away anything from what has been specifically provided in Clauses (b) and (c) of the Notification in very clear terms. The object is to give relief and encouragement to the manufacturers to produce goods in larger quantities than what were produced in the base year. There is no reason to assume that production before the levy of excise duty has to be ignored for this purpose. The base year has to be determined according to the principle laid down in clear and unambiguous words in Clauses (b) and (c) of Paragraph (2) of the Notification. The appellant's goods were cleared from his factory even before 1st April, 1973. As such his case clearly fell within Clause (c). Appeal dismissed.
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