TMI Blog1971 (4) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... 425 of 1968 and 16 of 1970 which have been filed by the Associated Cement Companies Ltd. against the Director of Inspection, Customs Central Excise, New Delhi. Arguments have been addressed in Petition No. 1207 of 1967 and it is stated that the decision in that petition would govern the other two petitions also. So far as Petition No. 425 of 1968 in which the central authority and Deputy Director of Inspection too has been impleaded as a respondent is concerned, an additional ground, to which reference would be made hereafter, is also taken. The petitioner is a company which owns about 16 cement factories in various parts of India. Tax Credit Certificate (Excise Duty on Excess Clearance) Scheme, 1965 (hereinafter called " the scheme ") ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nspection. It was observed that the tax credit is to be given only in respect of the Central excise duty levied under the Excise Act and any other excise duty levied under a different enactment was not entitled to the concession. The petitioner has accordingly filed these petitions to assail the above view of the Director of Inspection. The petitions have been resisted by the respondent. We have heard Mr. Kolah on behalf of the petitioner and Mr. B. Kishore on behalf of the respondent, and are of the opinion that there is no merit in the petitions. Before proceeding further in the matter, it would be pertinent to reproduce the relevant provisions of law. According to section 3 of the Excise Act, there shall be levied and collected in su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1), (3a) and (4) of item No. 34 and item No. 37 of that Schedule, a special duty of excise equal to 20 per cent. of the total amount so chargable on such goods; and (c) as respects goods comprised in items Nos. 4 II(1), 18, 18A(1), 18B, 20, 29A,33A, sub-items (2) and (3) of item No. 34 and radiograms comprised in item No. 37A of that Schedule, a special duty of excise equal to 33 1/3 per cent. of the total amount so chargeable on such goods. (2) Sub-section (1) shall cease to have effect after the 31st day of March, 1966, except 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6 of the General Clauses Act, 1897 (10 of 1897) shall apply upon such cesser as if the said sub-section had then been repealed by a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed at a rate not exceeding twenty-five per cent. of the amount of the duty of excise payable by him on that quantum of the goods cleared by him during the relevant financial year which exceeds the quantum of the goods cleared by him during the base year, whether the clearance in either case is for home consumption or export. (2) The goods in respect of which a tax credit certificate shall be granted under sub-section (1) and the rate at which the amount of such certificate shall be calculated shall be such as may be specified in the scheme : Provided that different rates may be specified in respect of different goods. . . . (6) In this section- (a) 'base year', in relation to an existing undertaking which manufactures or produces th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not exceeding sixty days. " Mr. Kolah, on behalf of the petitioner, submits that the petitioner-company is entitled to the grant of tax credit certificate to the extent of twenty-five per cent. of the total excise duty levied on it. For this purpose, it is urged, the special excise duty levied under section 80 of the Finance Act, 1965, should also be taken into account and not merely the duty levied under the Excise Act. This contention has been controverted by Mr. B. Kishore and we are of the opinion that it is not well founded. Perusal of section 80 of the Finance Act, 1965, reproduced above, makes it clear that special excise duty equal to twenty per cent. of the duty of excise under the Excise Act has been levied by that section. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods Act, observed that the term " duties of excise " has to be read as part and parcel of every legislation imposing a duty of excise. Section 64A provides that in contracts of sale amount of increased or decreased taxes should be added or deducted. Sub-section (2) of that section makes it clear that its provisions apply to " any duty of customs or excise on goods ". The words " any duty of customs or excise " are of wide amplitude and any observations in that context can obviously be of not much help while dealing with a case under section 280ZD of the Income-tax Act, 1961, which provides a special definition of duty of excise. An additional question arises in Petition No. 425 of 1968. It has arisen in the following circumstances : Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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