TMI Blog1988 (2) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... 8/- and Rs. 24662/- involved on the quantity of solvent cement cleared free of cost during the respective period covered by the 3 show cause notices should not be demanded from them. The appellant company in their replies to the above show cause notices contended that they were clearing goods under Notification No. 120/75 dated 30.4.75 assessing on the basis of Invoice price and since the cement had been cleared on nil prices as shown in the invoices no excise duty was leviable. It had also raised the question of its eligibility under Notification No. 89/79, dated 1.3.79 claiming that the aggregate value of clearances in a year is less than the stipulated Rs.15 lakhs and that the investment on plant and machinery employed in the manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. As regards the plea of set off of duty paid on the inputs used in the manufacture of solvent cement the original authority held against the appellant company on the ground that it did not make a declaration in terms of appendix to Notification 201/79. He has also stated that even though the Collector has the power to relax the provisions of declaration, no such specific request was forthcoming from the appellant company. In appeal against the Assistant Collector s aforesaid order dated 1.2.83 before the Collector of Central Excise (Appeals), Madras the appellant company failed to get any relief in respect of Notification 89/79, dated 1.3.79 on the ground that the appellant company has not adduced any acceptable evidence to establish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n paras 5 6 of the aforesaid report. He has also relied upon Tribunal s decision in the case of Malleable Iron and Steel Castings [ 1987 (30)E.L.T. 1019]. As against this, the learned SDR, on the other hand, relies upon Andhra Pradesh High Court s judgment in the case of Golden Press [1987 (27) E.L.T. 273-AP-Para 21] and another judgment of the Tribunal reported in 1983 (13) E.L.T. 1212. ;. Replying to the learned SDR s reliance on an Andhara Pradesh High Court s judgment, the learned advocate has urged that a proper way to reconcile both these judgments would be to take into account not only the capital investment on plant and machinery installed in respect of goods under exemption but also on the common plants and machinery which ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany for Notification 89/79 be decided by the adjudicating authority, namely the Assistant Collector after taking into account our observation above regarding capital investment on plant and machinery. 4. The appellant company s next plea regarding valuation of solvent cement at the rate of Rs. 32 per Kg. based on the rate of deduction from invoice value by DQS D if solvent cement supplied to the latter was either damaged or short is a reasonable basis for determining the value of goods cleared under Notification 89/79. The value of Rs. 50/-per Kg. adopted by the lower authorities on the basis of the price of solvent cement cleared by the appellant for other buyers is not relevant inasmuch as the supplies under DGS D are supplies to a di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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