The goods manufactured by the assessee were number dutiable before 1 3 1974.
The appellant was informed accordingly.
Initially the excise authority was of the view that the base clearances will be calculated on the basis of Clause b of Paragraph 2 of the Notification.
The excess clearances had to be calculated with reference to the base clearance to be determined in respect of each manufacturer in the manner prescribed in the Notification.
In the first place, excise duty becomes leviable on the goods manufactured by the appellant on and from 1st March, 1973.
The relevant portion of the Notification is as under After companyparing the clearances of specified goods under sub paragraph 1 , the base period and base clearances, in relation to a factory, shall be determind as under Where the specified goods were or are cleared from a factory for the first time on or after the 1st day of April 1976, the base period shall be the year 1975 76, and the base clearances shall be nil b where the specified goods were cleared from a factory for the first time on or after the 31st day of April 1973, but number later than the 31st day of March 1976, the base period shall be the three financial years, namely, 1973 74, 1974 75 and 1975 76 and the base clearances shall be the one third of the aggregate of the clearances of such goods during such base period c where the specified goods were cleared from the factory for the first time earlier than 1st day of April 1973, the base period shall be the year in which the aggregate of the clearances of such goods during any of the financial years 1973 74, 1974 75 and 1975 76 was the highest and the clearance during such base period shall be the base clearances.
198/76 C.E., dated 16 6 1976 by which exemption was granted to the extent of 25 of the excise duty on excess clearance of certain specified excisable goods.
But later on the excise authorities changed their view and a show cause numberice was issued to the assessee and after hearing him it was decided to calculate the base clearances in terms of Clause c of Paragraph 2 .
The appellant Addison Company Ltd. manufactures cutting tools which fall under Tariff Item 51A. The cutting tools manufactured by Addison Company were number exigible to duty before 1 3 l974.
P. Bharucha and Suhas C. Sen, JJ.
There is numberdispute that they were manufacturing cutting tools even before this date.
A Notification was issued by Finance Revenue Department of Government of India, No.
