GUJARAT WOOLEN FELT MILLS Vs. JOINT SECRETARY

JUDGEMENT

(1.) The petitioner has challenged an order dated 21-2-2002 passed by the adjudicating authority as confirmed by the appellate order dated 7-3-2003 and revisional order dated 29-12-2003. The petition arises in following factual background. The petitioner is a partnership firm and is engaged in the business of manufacturing woolen felt which is excisable product. In addition to clearing such final product for home consumption, the petitioner also exports such goods. The Government of India had issued a Notification No. 8/2001 dated 1-3-2001 and granted exemption to Small Scale Industrial Units from payment of excise duty and additional duty on clearances for home consumption upto a limit of value of Rs. 100 lakhs, subject to certain conditions provided therein.

(2.) Counsel for the petitioner submitted that the authorities gravely erred in interpretation of the exemption Notification No. 8/2001. The petitioner had filed a rebate claim on the basis of the export made on which excise duty was paid. Exemption Notification No. 8/2001 would not debar any such rebate claim. Clause (iv) of para 2 was misinterpreted by the authorities and would have no application to the clearances for export. He submitted that the entire approach was erroneous. Rebate claim should have been allowed.

(3.) On the other hand, Mr. Varun Patel, learned counsel for the Department opposed the petition. He placed reliance on the impugned orders and in particular, the decision of the revisional authority. He submitted that clause (iv) of para 2 of Notification No. 8/2001 was correctly interpreted.