TMI Blog1983 (2) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... ication No. 29/67-C.E. To facilitate a proper understanding of the issues involved, we reproduce below this notification, together with its amendment:- Notification No. 213/63-C.E., as amended by notification No. 29/67-C.E. In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts pipes and tubes of copper alloys, falling under sub-item (3) of Item No. 26A of the First Schedule to Central Excises and Salt Act 1944 (1 of 1944) in the manufacture of which duty paid copper or copper alloy in any crude form or manufactures thereof are used, from so much of the duty of excise leviable thereon, as is equivalent to the duty already paid under sub-item (1) and/or (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 4,000/- per M.T. with effect from 1-8-1974. To be precise the material period of dispute can be split up into two parts as under :- 1st Period-13-8-1974 to 11-11-1974. During this period, set-off was granted to them initially at the old rate of ₹ 1500/- per M.T. Later, however , the Assistant Collector granted them refund on 17-7-1976 for the balance set-off at the rate of ₹ 2500/- per M.T. But soon this was followed by a notice served on them on 26-10-1976 asking them to show cause why the amount of refund paid to them be not recovered. IInd Period-18-11-1974 to 31-1-1975 During this period set-off was granted to the appellants at the enhanced rate of ₹ 4000/- per M.T. initially itself. 4. Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er having approved the classification list, the Assistant Collector could not review his own order by confirming demand for recovery and that if at all there was any doubt about interpretation, the benefit ,of the same ought to be given to the appellants. 5. On behalf of the Department, Shri N.V. Raghavan Iyer stated that duty payable in the context of market purchases of crude copper means duty that was payable on the date of purchase, that this was the only reasonable meaning and if it became necessary to depart from the rules of grammar to get at a reasonable meaning, it could be done so, that what happened on 6-8-1977 was that the old Rule 10 was modified, that such modification did not amount to repeal of the rule, that Rule 10 b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is : duty payable on which date - whether on the date of purchase of crude copper from the market, as interpreted by the Department, or on the date of grant of set off in terms of the notification, as urged by the appellants. In our view, the answer to this question has to be sought in the context of the time at which the notification has to be applied. According to the Central Excise law, the occasion to apply the exemption notification is the time when excisable goods are sought to be cleared and, therefore, duty is to be assessed and paid thereon. In the case under consideration before us, the occasion to apply notification No. 213/63-C.E. would also arise only when copper pipes and tubes are to be assessed for clearance and it is at th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y down as to on what date the duty payable is to form the basis of set off and two interpretations about the relevant date are possible, one held by the Department and the other urged by the assessee-there is no reason why, in this matter of Central excise tax, the interpretation favourable to the assessee should not be adopted. We, therefore, hold that duty payable in the second paragraph of the notification refers to the duty payable on the date of grant of the exemption or set off when the copper pipes and tubes were to be assessed to excise duty prior to their clearance for home consumption. In view of this finding, it is unnecessary for us to go into other arguments of the appellants. 7. We allow this appeal accordingly with co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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