TMI Blog1965 (11) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... t, and upon hearing the arguments of Mr. S.K.L. Ratan, Advocate for the petitioner and of Mr. G. Ramanujam Central Government Standing Counsel, Madras on behalf of the respondent and having stood over for consideration till this day, the Court made the following Order : 2.Under the Central Excise and Salt Act, 1944, the manufacture of pigments, colours, paints, enamels, varnishes, blacks and cellulose lacquers is liable to excise duty. By certain Government notifications issued under the authority of Rule 8 of the rules framed under the Act, the Government exempted a certain quantity so manufactured. By such a notification issued in 1956, the entire output of the manufacture of certain specified items the total of which did not exceed 50 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacture by the petitioners. After that date, the petitioners were taking out licences. On a verification of the Accounts of the petitioners, demands were issued by the Department under Rule 10A in respect of the excise duty leviable on the quantities manufactured by the petitioners during various periods. In these two writ petitions, the demands are in respect of the period 1-1-1960 to 30-9-1960 (W.P. No. 286 of 1963) and for the period 1-10-1960 to 28-2-1961 (W.P. No. 287 of 1963). The petitioner appealed, but the appeals were not entertained, as the duty demanded was not paid which under the rules is a condition prerequisite to the entertainment of an appeal. In these writ petitions, the petitioner claims that these demands are il ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the exemption contemplated by the notifications. 6.The charging section is Section 3, which provides for the levy and collection of the duties of excise 'in such manner as may be prescribed'. As already stated, Section 6 of the Act enacts that no person shall engage in the production or manufacture or any excisable goods except under the authority and in accordance with the terms and conditions of a licence granted under the Act. Rule 9 of the rules framed under the Act provides for the time and manner of payment of duty. It states that no excisable goods shall be removed from any place where they are produced, whether for consumption, export or manufacture of any other commodity, until excise duty leviable thereon has been paid at suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined only on the basis of the notification providing for the exemption. It is common place that an exemption has to be strictly construed and a person seeking exemption must bring himself within the provision granting the exemption. 7Turning to the notification of the year 1960, it. purports to grant exemption only in respect of goods which are cleared by any manufacturer for home consumption. Under Rule 9, duty is leviable on goods whether they are cleared for home consumption or export or to be used in the manufacture of any other commodity. Strictly examined, therefore, the exemption is only for clearances for home consumption and not for clearances for any of the other two purposes. Secondly, the liability to pay duty arises on the oc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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