2007 (2) TMI 570 - AT - Central Excise

Summary

Issues:
1. Inclusion of wrapping paper value in assessable value of paper.
2. Quantification of proforma credit for wrapping paper.
3. Denial of Special Excise duty benefit for proforma credit.

Analysis:

1. The dispute in the case revolved around whether the value of wrapping paper used for packing paper should be added to the assessable value of the paper. The Commissioner (Appeals) had already decided against the appellants on this issue, and it was accepted that the wrapping paper value should be included. The appellants were granted the benefit of proforma credit under Rule 56A, subject to quantification by the adjudicating authority.

2. The Assistant Commissioner quantified the proforma credit for the period between February 1981 and June 1983, the period under appeal. The appellants contended that the credit should have been allowed for a broader period from April 1980 to March 1984. However, the Tribunal found no merit in this argument, stating that the credit was appropriately limited to the period under consideration. Any claim for periods outside the appeal timeframe could be pursued independently based on the status of ongoing proceedings.

3. The appellants were denied the benefit of Special Excise duty under Rule 56A, as it was argued that only Basic Excise duty was eligible for proforma credit. The appellants referenced a Tribunal decision suggesting that Special Excise duty could also be considered for proforma credit. However, the Tribunal noted that the specific notification supporting this argument was not applicable to the relevant period in the appeal. Consequently, the matter was remanded to the adjudicating authority for a fresh decision on the credit of Special Excise duty in alignment with the Tribunal's judgment and the relevant notification.

In conclusion, the appeal was partly rejected and partly allowed based on the issues discussed above. The Tribunal upheld the inclusion of wrapping paper value in the assessable value of paper, confirmed the quantification of proforma credit for the specific period, and remanded the decision on Special Excise duty benefit for further review in light of the applicable legal provisions and precedents.