TMI Blog1985 (8) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... in determining the value in relation to excisable goods under Section 4(4)(d)(ii) of the Central Excises and Salt Act, 1944 ('the Act', for short), the gross amount of Excise duty payable has to be excluded from the normal price or only the net amount of Excise duty which is actually paid shall be excluded. The question has arisen in the following circumstances: 2. By a notification bearing No. 198/1976, dated 16-6-1976, which was later amended under Notification No. 216/1976, dated 24-7-1976, the Excise duty payable by manufacturers of paper is reduced by 25% on clearances of their manufacture which are in excess of the clearances in the "base period", subject to the prescribed conditions. The duty is leviable on ad valorem basis in res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the objective of encouraging production etc. The assessee's claim was that so long as the notification granting exemption either wholly or partially did not require an assessee to pass on the benefit of exemption in the levy of Excise duty to the consumers of the goods, the authorities would not be justified in declining to exclude from the normal sale price the Excise duty payable in accordance with the Schedule rates. Reliance was placed by the assessee on the expression "payable" occurring in Section 4(4)(d)(ii) of the Act and that the said expression cannot be interpreted as "actually paid". 3. In view of the authorities declining to accept the aforesaid contention of the assessee, a writ petition was filed challenging the action of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods under this Act; and (b) the aggregate of the effective duties of excise payable under other Central Acts, if any, providing for the levy of duties of excise on such goods, and the effective duty of excise on such goods under each Act referred to in Clause (a) or Clause (b) shall be, - (i) in a case where a notification or order providing for any exemption (not being an exemption for giving credit with respect to or reduction of duty of excise on such goods equal to, any duty of excise already paid on the raw material or component parts used in the production or manufacture of such goods) from the duty of excise under such Act is for the time being in force, the duty of excise computed with reference to the rate specified in such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, still the Explanation fails to achieve the purpose because it cannot override the provisions contained in Sub-clause (ii). We cannot agree. The Explanation constitutes a part of the sub-clause (ii) inserted by the legislature and served the purpose of explaining what was required to be excluded from the normal price under Sub-clause (ii). We are unable to accept the contention of the learned Counsel that the Explanation cannot override the principles otherwise set out in Sub-clause (ii). After the amendment from 1-10-1975 Sub-clause (ii) will have to be read along with the Explanation and if so read there can be little doubt that what can be deducted from the cum-duty price is the actual amount of Excise duty paid and not what is otherw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gard to the above representation, we direct that the petitioners may file appeals within 30 days from today against the determination of the value by the authorities. The appeals, when filed, shall be admitted and dealt with according to law. 7. It is further represented that the petitioners had furnished certain bank guarantees regarding the disputed amount of duty. Pending disposal of the appeals, which the petitioners may file, the bank guarantees shall remain effective. If necessary the petitioners shall renew the bank guarantees. The question of encashing the bank guarantees, and if so, to what extent, shall be determined after the disposal of the appeals filed by the petitioners. If the petitioners fail to file appeals within the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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