TMI Blog1977 (12) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... include certain products manufactured by it (the petitioner) for computing the quantum of excisable goods for determining the slab for the purpose of applying the rate of Excise duty. 2. The petitioner is a manufacturer of various types of paints and compounds. One of such products manufactured by it (the petitioner) is called 'Paint P.U.F. Marking Black and White'. The petitioner had paid Excise duty on this product but subsequently applied for refund of Excise duty. The Excise authorities granted such refund. Thereafter, the petitioner claimed refund of a further sum of Rs. 965.66 P. on the ground that the quantity of this product manufactured by it (the petitioner) had been wrongly included for determining the slab for the purpose of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is composed of bitumen, solvent, pigment and extenders and is not liquid stencilling ink. However, under Notification No. 168/65-C.E., dated 16-10-1965, issued under sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, (hereinafter referred to as the Rules), the Central Government has exempted from Excise duty sealing compounds and sack printing inks (falling under Item No, 14. of the First Schedule to the Act) supplied to bona fide consumers subject to certain conditions specified in that notification. In other words, this product comes within the ambit of the word 'Paints' occurring in Item No. 14 of the First Schedule to the Act, but has been exempt under Rule 8(1) of the Rules from Excise duty subject to certain conditions specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red by the petitioner in the first slab of 750 Metric Tonnes of paints manufactured by the petitioner during the year 1967-68. 8. For the purpose of this petition we do not consider it necessary to go into the question whether or not this product comes within the ambit of the term 'paints' occurring in Item No. 14 of the First Schedule to the Act. We shall proceed on the basis that it comes within the ambit of the term 'paints', but has been exempted from Excise duty under Rule 8(1) of the Rules. Even so, can the quantity of this exempted product be included in the first slab of 750 Metric Tonnes of paints manufactured by an assessee in any year? The answer to this question must depend upon the language of the relevant provisions of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration the exemptions granted in interpreting the nature and the scope of the impost...............................the levy and exemption are parts of the same scheme of taxation. The two together carry into effect the purpose of the legislation. For finding out the true scheme of a taxing measure we have to take into consideration not merely the levy but also the exemptions granted." 12. Following the aforesaid observations of the Supreme Court, the High Court of Delhi observed in Sulekh Ram and Sons v. Union of India - 1978 ELT (J 525) = 1972 Tax Law Reports 1771, that if the Central Excises and Salt Act and the notification are read together, the effect is that goods exempted from Excise duty are taken out of the First Schedule to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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