TMI Blog1997 (1) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... able to pay any special excise duty upon the said goods. It is not possible to accept the Revenue's contention that the said goods would be liable to bear special excise duty as levied after 1st March, 1988, for the reason that the special excise duty that operated subsequent to 1st March, 1988 was a new levy under a different statute and distinct from that which operated during the period 1st March, 1987 until 28th February, 1988. Rule 9A does not operate in such circumstances. In favour of assessee. - 4411 of 1990 with 4667-73 of 1996 - - - Dated:- 27-1-1997 - S.P. Bharucha and Faizan Uddin, JJ. [Judgment per : Bharucha, J.]. - These appeals challenge the correctness of a judgment and order of the Customs, Excise Gold (Con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise Act or any other law for the time being in force. The provisions of the Central Excise Act and the rules made thereunder, including those relating to refunds and exemptions from duties shall, as far as may be, apply in relation to the levy and collection of the special duties of excise leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of excise on such goods under that Act or those rules, as the case may be." 3.The judgment of this Court in the case of Collector of Central Excise, Hyderabad v. Vazir Sultan Tobacco Co. Ltd. - 1996 (83) E.L.T. 3, dealt with a case where goods had been manufactured prior to 1st March, 1978, and cleared thereafter. The judgmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any, applicable thereto shall be the rate and valuation, if any, in force on the date on which duty is paid or, if the duty is paid through an account-current maintained with the Collector under Rule 9, on the date on which a application in the proper form is delivered to the officer-in-charge of the warehouse from which the goods were removed. Where any person who has removed excisale goods for export in(3) bond fails to export or to furnish proof of such export to the satisfaction of the Collector or diverts the goods for home consumption, the rate of duty leviable and the tariff valuation, if any, in respect of such goods shall be the rate and valuation in force on the date on which the duty is paid. Where duty becomes chargeable on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... moval, neither the levy is in force nor are Rules 9 and 9A and, hence, he need not pay any special excise duty on such goods. We do not see any valid basis for this apprehension. In the situation contemplated by Sri Vellapally, the date of removal has to be taken as February 28, 1979. It cannot be otherwise. If Rules 9 and 9A are held inapplicable, it would logically follow that the moment the goods are manufactured, the levy becomes payable and, in the circumstances, the last date of levy can reasonably be taken to be the date of removal. Of course, an absurd consequence would follow if it is held that in the above situation, no special excise duty is payable if the removal is on or after March 1, 1979. Such an absurd consequence could not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , special excise duty had been levied under a provision in the Finance Act, 1987, similar to that quoted, but during this period, by reason of a notification issued under the provisions of Rule 8 of the Central Excise Rules with simultaneous effect, there was a total exemption from the levy. By the Finance Act, 1988, special excise duty was also levied; there was no exemption notification, so that it was payable. The question in these appeals is whether the goods which had been manufactured prior to 28th February, 1988 and cleared after 1st March, 1988, ("the said goods"), were subject to the payment of special excise duty. 5.Counsel for the appellants submitted that, on the principle of the judgment in the case of Vazir Sultan Tobacco Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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