CHOICE LABORATORIES STATE Vs. COLLECTOR OF C. EX.

JUDGEMENT

(1.) BY the impugned orders, the Collector of Central Excise (Appeals), Bombay, upheld the two orders dated 14 -4 -1986 passed by the Assistant Collector of Central Excise (1) denying the benefit of excise duty exemption to the appellants in terms of Central Excise Notification No. 140/83 dated 5 -6 -1983 during the financial year 1985 -86 on the ground that the value of clearance of all excisable goods by them during the preceding year had exceeded Rs. 20 lakhs, the cut -off point laid down in the eligibility criterion and (2) demanding duty on the above ground on the clearances effected during the period from 1 -8 -1985 to 31 -8 -1985.

(2.) BY Notification No. 46/81 -C.E., dated 1 -3 -1981 issued under Rule 8(1) of the Central Excise Rules, 1944, the Central Government exempted from excise duty all goods except sandal oil falling under Item No. 68 of the CET (the First Schedule to the Central Excises and Salt Act, 1944), other than goods manufactured in a factory (as defined in the Factories Act, 1948). This notification was superseded by Notification No. 178/85 dated 1 -8 -1985.

(3.) NOTITICATION No. 140/83 exempted cosmetics and toilet preparations, falling under Item 14F of the CET cleared during any financial year from the whole of the duty leviable thereon on the first clearances valued upto Rs. 5 lakhs and from 50% of the duty leviable on the next clearances upto Rs. 10 lakhs. There were several conditions laid down in the notification. The condition with which we are concerned in the present case read: -