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1985 (2) TMI 251 - SC - Central ExciseWhether the respondent was entitled to the benefit of the exemption notification dated November 23, 1961 when the dyes said to have been used by the respondent in the manufacture of other dyes were not liable for payment of excise duty when they were manufactured, that is, before the introduction of Item 14D into the First Schedule to the Act even though duty may have been paid on them after the introduction of item 14D? Whether the demands made in this case fall within the scope of Rule 10-A of the Rules or under Rule 10 thereof? Held that:- Under the notification exemption could be claimed only where the dyes used in the manufacture of other dyes were liable to, payment of excise duty when they were manufactured and such duty had been paid. A voluntary payment of excise duty on dyes which were not liable for such payment would not earn any exemption under the notification. The finding re p73 corded by the High Court on the above question is, therefore, liable to be set aside In the instant case there has been no assessment of the manufactured goods at all as contemplated by Rule 52 of the Rules and the delivery of the goods has taken place contrary to Rule 52-A of the Rules. The discussion and correspondence between the assessee and the officers concerned had taken place on December 20, 1961 and January 416, 1962 was in the nature of an advice and not an assessment as contemplated under Rule 52. Hence this case is not covered by Rule 10 of the Rules at all. Rule 10-A of the Rules which is a residuary provision is, therefore, necessarily attracted. Hence the plea of limitation raised on the basis of Rule 10 of the Rules does not survive. In the result we set aside the judgment of the High Court and dismiss the writ petition filed by the respondent. Appeal allowed
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