Judgment:
1. Appellant is a manufacturer of food and food products which are packed in tin containers. In the Price List the appellant referred to and claimed the benefit of exemption Notification 34/83, dated 1-3-1983. Price list was approved denying the appellant the benefit of notification and this order was confirmed by the Collector (Appeals).
Hence the present appeal.
2. Under the notification, Government exempted goods of the description specified in column (3) of the Table to the notification and falling under Chapter No. of the Schedule to the Central Excise Tariff Act, 1985, specified in column (2) of the Table from so much of the duty of excise as is equivalent to the duty of excise leviable on such specified goods under the Central Excises & Salt Act, 1944, with reference to that part of the value thereof which represents the cost of metal containers in which the specified goods are packed at the time of their removal from the factory. The language of the notification has a simple consequence namely, in paying duty on food and food products packed in metal containers, duty will be paid only on the value of the food or food products and not on the value of the containers. There is no dispute that the products manufactured by the appellant fall under column (3) of the Table to the notification. Lower authorities have denied the benefit of notification to the appellant on the basis of the Explanation to Clause (1) of the notification.
"For the purposes of this notification, the cost of metal containers in respect of the specified goods of the description mentioned in column (3) of the said Table against Sl. No. 1 thereof and packed at the time of their removal from the factory in round open top sanitary cans of trade sizes, namely, 202x308, 301x206, 301x309, 301x409, 401x411 and 603x700 shall be Rs. 1.10, Rs. 1.80, Rs. 2.00, Rs. 2.20, Rs. 3.10 and Rs. 8.40 respectively." 4. The purpose of the Explanation is, to fix by the notification, the value of the particular kind of containers of particular sizes referred to therein for the purpose of deduction from the total value which might have been declared. The Explanation relates only to goods packed in round open top sanitary cans of particular sizes referred to therein. The Explanation will not cover goods packed in other kind of containers or of same kind of containers of different sizes. In other words, where the containers do not attract the description referred to in the Explanation, the value thereof, for the purpose of deduction from the declared value will have to be determined by the Department separately on the basis of the available material. The fact that the container in a particular case will not fall under the description contained in the Explanation will not have the consequence of negating the benefit of notification and the cost of the container will have to be separately declared by the assessee. The impugned orders are set aside. It is open to the appellant to seek refund if the appellant is entitled to any such refund.