TMI Blog1993 (4) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... nancial year but somewhere during the course of the financial year. In the present case the appellants were clearing the goods after paying duty as per Tariff rate from 1-4-1991 to 4-8-1991 and started availing of the benefit of Notification 175/86 with effect from 5-8-1991. Under the Notification 175/86 the specified goods at the exempted rates can be cleared upto the limits under paras 1(a) and 1(b) and para 2 of the Notification. These for convenience of reference are reproduced below: In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 85/85-Central Excises, dated the 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom so much of the duty of excise leviable thereon which is specified in the said Schedule read with any relevant notification issued under sub-rule (1) of Rule 8 of the said Rules as is equivalent to an amount calculated at the rate of 10% ad valorem: Provided that the amount of duty of excise payable on the specified goods under sub-clause (i) of Clause (a), or, as the case may be, under this clause, shall not be less than an amount calculated at the rate of 5% ad valorem: Provided further that the aggregate value of clearances of the specified goods in terms of clause (a) and clause (b) of this paragraph taken together, shall not exceed rupees seventy-five lakhs. 2. The aggregate value of clearances of the specified goods from any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 1(b) read with Para 2 of the Notification. The learned lower appellate authority s findings in this regard are as under :- 8. On a detailed reading of the Notification No. 175/86, it is noticed that the notification gives full exemption to the first clearance of the specified goods in a financial year and partial exemption for clearances immediately following the first clearances. The notification thus makes it amply clear that the value of those clearances has to be computed from the beginning of the financial year and duty free clearances or concessional rate of duty are applicable for the goods cleared from the beginning of the financial year and also for the goods cleared immediately after such duty free clearances. At the begin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods manufactured by the appellants is concerned the same limit as set out in Para 3 has not been exceeded. He has pleaded that the lower appellate authority was in error in holding that these are the first clearances which are alone eligible for the benefit of the Notification and in case the appellants choose to clear the same goods on payment of full duty, the subsequent clearances, if the limit set out for the first clearances is exceeded, will not be eligible for the benefit of the Notification. He pleaded that this is an erroneous interpretation of the Notification. 3. The learned DR for the Department adopted the reasoning of the learned lower appellate authority. 4. We observe that Notification 175/86 is a beneficent piece of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upto Rs. 75 lakhs of the goods cleared after they started availing of the benefit of Notification 175/86. We observe that there is nothing in the Notification to say that if a manufacturer starts availing of the benefit of the Notification 175/86 during the middle of a financial year he is not eligible for the clearances at the exempted rates upto the limits as specified in paras 1(a) and 1(b) and Para 2 of the Notification 175/86. There is also nothing in the notification to say that an assessee can avail of the benefit of Notification 175/86 either in the beginning of the financial year or not at all. In fact such interpretation has not been placed by the authorities on the Notification as the appellants have been allowed to avail of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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