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TMI Blog2008 (9) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... ersed 8% of the value of these motor vehicles in the cenvat credit account in terms of Rule 57AD of the Central Excise Rules. Revenue proceeded against the appellants on the ground that during the relevant period, the intermediary products which have been manufactured by the assessee namely the chassis and the engines are not entitled for any exemption Notification. Since the intermediary products are not entitled for the exemption, they are liable to pay duty. That is the stand taken by the revenue. In fact, Notification No. 67/95 dated 16-3-1995 exempts intermediary products which are used in the manufacture of exempted final products. When the final products are dutiable, then there is no exemption in respect of the intermediary products during the relevant period. In view of this, proceedings were initiated against the assessee and the learned Adjudicating Authority confirmed the demand after making certain adjustments for the reversal of the cenvat credit. Anyhow that is not very important now for our decision. The stand of the revenue is that Notification No. 67/95 dt. 16-3-95 is the only Notification which gives exemption for the intermediary products and when the final prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xemption notification must be construed with regard to object and purport, which it seeks to achieve. Doctrine of fairness is a relevant factor to be considered while interpreting exemption notification. [paras 21 & 22] 4. HMM Ltd. v. CCE - 1996 (87) E.L.T. 593 (S.C.) Exemption notification not only to be construed strictly but also reasonably having regard to the language employed therein. [para 14] 5. Bombay Chemical Pvt. Ltd. v. CCE - 1995 (77) E.L.T. 3 (S.C.) Exemption notification to be strictly construed only when a particular article is capable of falling in one or the other category specified in the notification but once it falls under the exemption notification it has to be construed broadly and widely. [para 9] 6. Orient Paper Mills Ltd. v. UOI - 1978 (2) E.L.T. 382 (S.C.) Assessing authorities exercise quasijudicial functions and they have duty cast on them to act in a judicial and independent manner and their judgment cannot be controlled by directions given by the Controller. [paras 4 & 5] 5. On the other hand, learned departmental representative stated that Notification has to be strictly construed. During the relevant period there wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of excise leviable thereon under both the above mentioned Acts, subject to the following conditions, namely :- (i) that it is certified by the manufacturer of such goods on the relevant clearance documents that the goods are intended to be donated for the relief and rehabilitation of the people affected by the earthquake in the said State without making any charge therefore"; (ii) that the goods are sent directly from the factory of the manufacturer or warehouse to the Central Government, the Government of Gujarat; or as the case may be, the relief agencies of the Central Government, the Government of Gujarat including the relief agencies duly approved by the Government; and (iii) that the manufacturer produces before the jurisdictional Deputy Commissioner or the Assistant Commissioner of Central Excise, as the case may be, within three months from the date of removal of the goods or within such extended period as the said officer may allow, a certificate from the District Magistrate of the affected area in the State of Gujarat that the said goods have been donated for use for the aforesaid purpose. 2. This notification shall remain in force upto and inclusive of the 31st day o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the manufacture of cement which was cleared under exemption should not be recovered, as the clinker was utilized by availing another Notification No. 217/86. The Deputy Commissioner confirmed demand of Rs. 8,79,567/-. When the matter came up before the Tribunal, this Bench held the view that even the clinker is exempted. The Tribunal relied on the decision of the Supreme Court in the case of HMM v. Ltd. v. Collector of Central Excise, New Delhi reported in 1996 (87) E.L.T. 593 (S.C.) wherein the Hon'ble Supreme Court observed that the exemption notification not only is to be construed strictly but also reasonably having regard to the language employed therein. It was held by the Tribunal that in the facts and circumstances of the case and taking into consideration of the fact that not only cement but also clinker was donated for earthquake relief and rehabilitation work and there is no justification to deny the benefit of exemption to the clinkers in terms of Notification No. 128/94. This decision is squarely applicable to the present case because if duty is demanded on the intermediary products, then the very purpose of the main Notification No. 2/2001 will be defeated. In ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ronic Hardware Technology Park, or (iv) to a unit in a Software Technology Park, or (v) under notification No. 108/95-Central Excise, dated the 28th August, 1995, or (vi) by a manufacturer of dutiable and exempted final products, after discharging the obligation prescribed in rule 57AD of the Central Excise Rules, 1944." 10.1 This Notification makes it very clear that captively consumed goods would be exempted even if the final products are exempted provided the obligations prescribed in Rule 57AD are carried out. This Notification was issued on 1-6-2001 and the relevant period in the present Notification is prior to that. Therefore, the view of the department is that during the relevant period the intermediary products are liable for duty. As we have already given a finding that once the Notification exempts all goods cleared/donated or purchased from cash donations to the earthquake victims they are exempt from duty. We need not press into service Notification No. 67/95 in the peculiar circumstance of the case where the goods go to the relief victims. Once this Notification No. 67/95 is not pressed into service, its amendment becomes irrelevant at least for this case. Even, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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