TMI Blog1988 (2) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... s and Salt Act, 1944. In order to appreciate the controversy in question, relevant portion of Notification 136/77, as amended by 227/77, dated 15-7-1977 is reproduced below :- 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 (Goods of Special Importance) Act, 1957 (58 of 1957), the Central Government hereby exempts fents and rags of cotton fabrics of the description specified in column (2) of the Table hereto annexed (hereafter in this notification referred to as the Table") and falling under sub-item I of Item No. 19 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944) from so much of the duty of excise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts and therefore, the value of the fents i.e. the price at which the fents are sold is to be taken into account for determining the slab rate instead of the value of the parent cotton fabric from which such fents arise. He has also pointed out that if the department s interpretation is given an effect, it would raise practical problems inasmuch as the fents arise out of cotton fabrics of different varieties namely fine, medium and coarse and then they are collected altogether and baled. It is not possible to segregate the fents according to the price of each parent fabric. Last argument of the learned advocate is that since there is a scope of ambiguity in the notification as it is worded, the benefit of ambiguity should be given to the su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty specified in Column (3) of the Table against such category of fents and rags has to be applied with reference to the value (i.e. the price) at which such of the Central Excises and Salt Act, 1944. In other words, while applying the rate of duty specified in Column (3) of the Table, this rate would be applicable to the price of the fents and rags which are the subject matter of clearance from the factory. The value of the parent fabrics would be relevant only in determining any one out of the five categories or nature of the fents and rags spelt out in Sl. No. B of the Table. The aforesaid interpretation comes out on the plain reading of the Notification. There is hardly any scope for ambiguity and therefore, the argument of the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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