TMI Blog1981 (9) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... excise duty actually paid or excise duty leviable under the Excise Act. 2. It is not necessary to set out the facts of the cases at any great length. Suffice it to note that the financial years relevant in the five cases are 1965-66 to 1969-70. The case of the Orient Paper Mills Ltd. in each year is that with the base year being 1964-65 the tax credit certificates in each year have been given for a lesser amount than what was enjoyed by law and in excise duty payable the special excise duty levied by the Finance Act had also to be taken into account. 3. The learned single Judge against whose judgments the four appeals have been filed has rejected both the contentions. On the question as to whether the special duty imposed by the Finance Act 10 of 1965 was excise duty, the learned Judge has followed a Bench decision of this Court in The Associated Cement Co. Ltd. v. Director of Inspection, I.L.R. 1971 (1) Delhi 556. On the other question the learned Judge has observed Counsel has laid great stress on the word payable as used in Section 280ZD of the Income-tax Act. I cannot accept this submission. The duty which the paper mills had to pay actually was the duty as provided i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as respects things done or omitted to be done before such cesser; and Section 6 of the General Clauses Act, 1897 (10 of 1897) shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act. (3) The duties of Excise referred to in sub-section (1) in respect of the goods specified therein shall be in addition to the duties of excise chargeable on such goods under the Central Excises Act or any other law for the time being in force and such special duties shall be levied for purposes of the Union and the proceeds thereof, shall not be distributed among the States. (4) The provisions of the Central Excises Act and the rules made thereunder, including those relating to refunds and exemptions from duties, shall as far as may be, apply in relation to the levy and collection of the duty of excise leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of excise on such goods under that Act or those rules. Section 280ZD of the Income-tax Act reads as under:- 280ZD. (1) Subject to the provisions of this section, a person, who during any financial year commencing on the 1st day of Apr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount, not exceeding the amount of the certificate, as is used within such period as may be specified in the scheme- (i) for repayment of loans taken by the person from any of the financial institutions notified in this behalf by the Central Government, or (ii) for the acquisition of any capital asset in India, including the construction of any building, for the purposes of his business, or (iii) where the person is a company, also for redemption of its debentures. (6) In this section:- (a) base year , in relation to an existing undertaking which manufactures or produces the goods referred to in sub-section (1), means the financial year commencing on the 1st day of April, 1964, and in relation to any other undertaking, the financial year in which such undertaking begins to manufacture or produce such goods; (b) duty of excise means the duty of excise leviable under the Central Excises and Salt Act, 1944 (1 of 1944). 5. Section 280ZE empowers the Central Government by notification in the Official Gazette to frame one or more scheme or schemes to be called tax credit certificate scheme or schemes in relation to tax credit certificates to be granted under Chap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = 1978 (2) E.L.T. (J 416) (S.C.). 8. In J.K. Steel Ltd. s case the point in issue was as to what was the duty leviable on the wires manufactured by the assessee out of steel rods which had already been imported. In that context it was observed that the effect of the Finance Act 2 of 1962 and the various notifications issued for the purpose of implementing the scheme under the Act was that excise duty is leviable at the rate mentioned in column 3 of Item 26AA on pig iron or steel ingot used in the production of the article on which duty under entry 26AA is sought to be levied but to the extent any excise duty or countervailing custom duty had been paid on any of the material used in the manufacture of any of that article, the same was exempt. From this scheme, it was held, it was clear that when Item 26AA speaks of the excise duty for the time being leviable on pig iron or steel ingots as the case may be it refers to the excise duty payable on the steel ingots used in the production of the article dutiable under that item. We cannot from this judgment find any support for the contention raised before us . 9. In N.B. Sanjana s case what was mentioned was that the expression ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
