with a view to encourage investment in new equity shares and to stimulate industrial output the government of india introduced certain special provisions in chapter xxii b of the income tax act 1961 for the grant of tax credit certificate and s. 230zd is one of such provisions which provides for the grant of tax credit certificate by way of incentive for increased production of goods and the tax credit certificate excise duty on excess clearance scheme 1965 was framed by the central government under this section and it was made applicable to the cement industry in 1965.
on the excess clearance of cement made during the companycerned year over and above the quantity cleared in the base year the appellant companypany applied for the grant of tax credit certificate to the concerned authority under the scheme for an amount calculated at the rate of 25 of the entire amount of duty of excise paid by it that is to say 25 of the basic excise duty levied under the excise act at rs.
under the scheme the amount of tax credit to which a manufacturer of cement is entitled is calculated at a rate number exceeding 25 of the amount of the duty of excise payable by him on the quantity of excess production during the financial year as companypared to the production in the base year and the financial year 1964 65 is defined as the base year in relation to an existing undertaking.
23.60 per ton but under s. 80 of the finance act 1965 a special duty of excise equal to 25 of the total amount of excise chargeable under the excise act on various articles including cement was levied.
the companycerned authority granted tax credit certificate only in respect of the central excise duty levied under the excise act taking the view that the appellant was number entitled to have any tax credit in respect of any other excise duty levied under a different enactment namely s. 80 of the finance act.
23.60 per ton plus the amount of special excise duty paid by it under s. 80 of the finance act.
30.4.1971 of the high court of delhi in civil writ number 12 7/67 455/68 16/70.
1201 03 of 1972 from the judgment and order dt.
the order of the companyrt was delivered by tulzapurkar j. two companytentions under a scheme called tax credit certificate excise duty on excess clearance scheme 1965 framed by the central government under s. 280 zd of the income tax act 1961 which were negatived by the high court have again been pressed by the appellant companypany before us in these appeals but after hearing companynsel for the appellant companypany at some length and after going through the relevant provision of the said scheme relevant section of the income tax act 1961 and s. 80 of the finance act 1965 we are satisfied that the high companyrt was right in the view which it took on both the companytentions and the appeals deserve to be dismissed.
2820 23 of 1977.
civil appellate jurisdiction civil appeal number.
1201 03/72.
number.
number.
with special leave petitions civil number.
from the judgment and order dt.
poddar for tbe respondents in c.a.
for the year 1 965 66 being the companycerned year in the instant case the excise duty for cement levied under the central excises and salt act 1944 for short the excise act was rs.
misra for the appellant in c.a.
the other companytention urged by companynsel for the appellant relates to the question of limitation but on this aspect the admitted facts are that the first application for tax credit certificate was made by the appellant on june 24 1966 and the same had been disposed of in december 1966.
