TMI Blog1995 (6) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... 150/83, dated 13-5-1983. The appellants have claimed the benefit of exemption in terms of Notification 77/83. The exemption is available to units who fulfilled the conditions contained in clauses 2, 3 and 4 of the said Notification. Condition No. 2 of the Notification stipulates that for eligibility of this exemption, the aggregate value of clearance of excisable goods from factory in the previous financial year should not exceed Rs. 40 lacs. According to Department total clearance during 1983-84 exceeded Rs. 40 lacs and the factory was not eligible for the benefit contained in the Notification for the year 1984-85. It was claimed by the party that they are entitled to rebate in terms of Notification No. 150/83, dated 13-5-1983 during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... either stopped nor factory was closed since other activities were carried out during the stay period. Mere workers strike cannot be considered that factory was closed and this strike period cannot be taken for granted that factory had remained closed for a period of more than 15 days for the purpose of rebate in terms of Notification. He drew our attention to the finding given by the Collector (Appeals) wherein it was held that the word `closed should be interpreted with reference to production-day and if on a particular day there is no production then for the purpose of Notification, the factory is closed. He contended that the Collector (Appeals) erred in not observing that the Notification 150/83-C.E. refers to only clearance and not p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f more than 15 days due to any reason and in that case clearance has to be computed as per calculation or formula as given in clause (a) and accordingly it has been worked out since factory had remained closed due to strike for a period [of] 48 days. There was no reference [to] either day to day production or monthly but it has to be worked out as laid down in Notification taking into consideration of the fact that factory had remained closed for a period of more than 15 days at a time. Referring to the notice issued by the management to all employees he said that it is clear that employees/workers have stopped the work and in the common parlance stoppage of work due to strike amounts to closure since the term `closed has not been defined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period with the quantity cleared during the incentive period. But in the present case the main point of dispute is whether factory had remained closed during the period of strike. Undoubtedly the Notification No. 150/83-C.E. related to the concession being given when clearances during the incentive years exceeded the clearances of the base year. Like earlier Notification 283/82, dated 27-11-1982 it deals with clearances and not with production as such. In explanations (1) and (2) of the Notification 150/83, we come across terms `base clearances , basic period and formula has been laid down in clause (1)(a), 2(1)(b) to the explanation how it is to be computed if the factory had not remained closed for a period of more than 15 days and how i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. (3)............................................................." 5. Although there was mention of word `closed and explained how it is to be calculated if factory was closed for 15 days or more, the word `closed has not been defined either in the Central Excise Act or in the Notification as it was argued on behalf of the appellants. Sufficient evidence was brought on record to show that the employees have struck work and resorted to a stay in strike from 12-4-1982 to 27-5-1982. But there is no evidence to show that factory was actually closed during the period of strike. Strike may result in closure of the factory but not necessarily. Strike and closure are not synonymous. Since beginning it was the contention of the appellants t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
