| Headnote |
Central Excise Rules, 1944-Rule 8 : Parts of power driven pumps used for manufacturing pumps within the factory-Eligibility to benefit of exemption from payment of duty-Notification No. 46/94, dated March 1, 1994, a composite notification incorporating earlier exemption notifications, did not show the said item to be exempted, though it had all along been exempted since 1978 in view of consistent Govt. policy-Notification No.95/94 issued subsequently, however, clarified that the said item was also exempted-Held, the subsequent notification was merely clarificatory and made explicit what was implicit-Hence, exemption from payment of duty is available for the intervening period between issuance of Notification Nos. 46/94 and 95/94 i.e. between March 1, 1994 and April 25, 1994-Central Excise Tariff Act, 1985-Tariff Heading No. 84.13-Central Excise and Salt Act, 1944-First Schedule Item No. 30A. Exemption from duty-Clarificatory notification-Being clarificatory in nature, it would take effect retrospectively. Appellant is a manufacturer of power driven pumps and parts thereof, designed for handling water. According to it, with a view to reducing special exemption notifications and consolidating various exemption notifications, in 1994, the Government rescinded 389 notifications with effect from March 1, 1994 and re-issued a consolidated notification incorporating earlier notifications vide Notification No.46/94 dated March 1, 1994. In the said notification, power driven pumps were shown as an exempted item. However, parts of power driven pumps used in manufacture of pumps within the factory which were all along exempted from 1978 were omitted. But there was no change in the Government policy in 1994 which was in vogue since 1978. The omission was, therefore, brought to the notice of the Government by the industries. The Government was satisfied and amended notification. No.46/94 dated March 1, 1994 by issuing another notification No.95/94 on April 25, 1994 correcting the mistake and clarifying the position that parts of power driven pumps which were used in manufacture of power driven pumps would also be exempted. Show cause notices were, however, issued by the Assistant Collector, Central Excise, alleging that the appellant had cleared the parts of power driven pumps for use within the factory for the manufacture of submersible power driven pumps during the period between 1st March, 1994 and 21st April, 1994 without payment of duty which was subjected to central excise duty; that the said item was exempted with effect from April 25, 1994 and the appellant was, therefore, liable to pay excise duty for the intervening period, i.e. 1st March, 1994 and 21st April, 1994. Appellant submitted reply denying its liability to pay excise duty, but the Assistant Commissioner, Central Excise confirmed the demand. That order was confirmed by the Commissioner (Appeals) and also by the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi (CEGAT). Hence the present appeals. |
