ORDER
Jyoti Balasundaram, Member (J)
1. The interpretation of Notification 124/87 dated 29-4-1987 relating to rate of duty on cement arises for determination herein.
2. The appellants herein manufacture cement falling under sub-heading No. 2502.20 CET, 1985, in their factory at Imlai since 1983. The Clinker out of which cement is manufactured was produced in a factory at Narsingarh which commenced production on 11th April 1982. Duty was being paid at the rate of Rs. 185/- per metric tonne in terms of Notification 124/87 dated 29-4-1987. The appellants set up another clinker plant which commenced production in October 1988 and for the cement manufactured out of clinker from the 2nd Plant – Diamond II Plant, the appellants paid duty at the same concessional rate, during the period 1988-1989. After the 1989 budget, they paid concessional duty in terms of Notification 94/89 dated 1-3-1989. The Department has denied the benefit of exemption to cement manufactured out of clinker produced in the Diamond II Plant the Assistant Collector’s order that such cement will attract duty at the rate of Rs. 215/- PMT as prescribed under Notification 35/88 dated 1-3-1988 having been upheld by the lower appellate authority, this appeal has been preferred before us.
3. We have heard Shri V. Lakshmikumaran, learned Counsel and Shri Bhatia, learned Jt. CDR and perused the records.
4. The Central Government framed a scheme to provide relief to cement manufacturing units which had started production after 1982. The tariff rate of cement falling under sub-heading No. 2502.20 was Rs. 250/- per MT. However, in furtherance of the relief measures, the Government issued 3 Notifications in all, granting concession in the rate of duty. The relevant notifications are reproduced below:
1. Notification 35/88-C.E., dated 1-3-1988
Effective rate of duty on cement of sub-heading 2502.20.- In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts cement falling under heading number 2502.20 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), from so much of the duty of excise leviable thereon which is specified in the said Schedule as is in excess of the amount calculated at the rate of Rs. 215 per tonne. (Notification 35/88-C.E., dated 1-3-1988 as amended by Notn. 94/89-C.E., dated 1-3-1989).
2. Notification 124/87-C.E., dated 29-4-1987
Exemption to cement produced in new factories commenced during 1-1-1982 to 31-3-1986.- In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts cement falling under sub-heading No. 2502.20 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and manufactured in a factory which has commenced production during the period commencing on the 1st day of January, 1982 and ending with the 31st day of March 1986, from so much of the duty of excise leviable thereon under the said Schedule as is in excess of the amount calculated at the rate of Rs. 195 per tonne.
Provided that such cement is manufactured out of clinker produced within the same factory in which such cement is manufactured or within such other factory of the same manufacturer where production of clinker has commenced during the aforesaid period.
This notification shall be in force upto and inclusive of the 31st day of March 1990. (Notification 124/87-C.E., dated 29-4-1987 as amended by Notn. 94/89-C.E., dated 1-3-1989).
3. Notification 36/87-C.E., dated 1-3-1987
Exemption to cement. – In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944 the Central Government hereby exempts cement falling under sub-heading No. 2502.20 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and manufactured in a factory which has commenced production on or after the 1st day of April 1986, from so much of the duty of excise leviable thereon under the said Schedule as is in excess of the amount calculated at the rate of Rs. 165/- per tonne.
Provided that such cement is manufactured out of clinker produced within the same factory in which such cement is manufactured or within such other factory of the same manufacturer where production of clinker has commenced during the aforesaid period.
This notification shall be in force upto and inclusive of the 31st day of March 1990. (Notification 36/87-C.E., dated 1-3-1987 as amended by Notification 94/89-C.E, dated 1-3-1989).
5. From a reading of the notifications the following pattern emerges:
(i) Notification 35/88 dated 1-3-1988 as amended by the Notification 94/89 prescribed effective rate of duty of Rs. 215/- per M.T.
(ii) Notification 124/87 offered a duty concession of Rs. 20/- PMT by prescribing the rate of Rs. 195/- PMT (215-195 = 20/-) subject to the conditions that:
(a) the cement was manufactured in a factory which started production during the period between 1-1-1982 and 31-3-1986 and
(b) such cement is manufactured out of clinker produced within the same factory in which such cement is manufactured or within such other factory of the same manufacturer where production of clinker commenced during the aforesaid period (emphasis supplied).
(iii) Notification 36/87 as amended by 94/89 granted concession of Rs. 50/- PMT by prescribing rate of duty of Rs. 165/- (215-165 = 50) subject to the condition that.
(a) cement is manufactured in the factory which commenced production on or after 1-4-1986 and
(b) such cement is manufactured out of clinker produced in a factory which has commenced production during aforesaid period i.e. on or after 1-4-1986.
6. In this case duty on cement manufactured in the factory where production commenced in 1983 (i.e. between 1982 and 1986) can be paid at the concessional rate of Rs.195/- per M.T. if made out of clinker produced between 1982 and 1986. Admittedly the clinker used was produced in a factory commencing production only inl988 i.e. well after the period mentioned in Notification 124/87 and, therefore, will attract duty, not at the concessional rate, but at the prescribed rate of Rs. 215/- per M.T. We are unable to accept the learned Counsel’s contention that the words “aforesaid period” contained in Notification 124/87 should be read to mean only the commencement date i.e. 1st January 1982, in a harmonious construction of Notification 124/87 and 36/87 wherein the same words “aforesaid period” figure in relation only to one date, namely 1st April 1986. Such a construction is not permissible, as it would result in violence to the plain language of the Notification. The rule of harmonious construction is to be applied only in the event of ambiguity in a notification or if the ordinary interpretation of the notification results in an absurd construction. This is not the case, here. The language of the Notification 124/87 is clear, admits of no ambiguity and the ordinary interpretation of the words “aforesaid period” does not give room to absurdity. We, therefore, see no force in the ‘appellants’ submissions.
7. We see no reason to interfere with the impugned order and confirm the same. The appeal is dismissed.