I T C LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) To accept the respondents' contention in this petition would be to hold that an Exemption Notification issued under Rule 4 of the Central Excise Rules, 1944, can create the liability to pay higher, not lesser, excise duty.

(2.) The Exemption Notification in question is dated 1st March 1979. It was issued by the 1st respondent in exercise of the powers conferred by Rule 8. The 1st respondent thereby exempted cigarettes of the description specified in the first column of the table thereof from so much of the duty of excise leviable thereon, both under the Central Excise Act and the Additional Duties of Excise Act, as was in excess of the duty specified in the corresponding entry in the second column of the table. There was a proviso which followed the table which is most relevant here. It read :

(3.) On 1st March 1979 the petitioners filed a price-list and a classification list. On 20th March 1979 a gate pass was issued in respect of removals made upto 20th March 1979. The total assessable value of the different brands of the petitioners' cigarettes and the amount of duty in respect of each brand was shown thereon. Relief was sought at the rate of Rs. 5.50 per thousand cigarettes manufactured from duty paid unmanufactured tobacco in accordance with the notification.