1983 (7) TMI 305 - AT - Central Excise

Summary

Issues:
1. Interpretation of Rule 56A of the Central Excise Rules, 1944 regarding transfer of credit in the R.G. 23 account.
2. Authority of Assistant Collector vs. Collector in granting permission for credit transfer.
3. Review of Collector's order denying credit benefit.
4. Time-barred duty demand and assessment by Superintendent, Central Excise.
5. Equitable considerations in exercising discretion by the Collector.

Analysis:

1. The appeal under Section 35B of the Central Excises and Salt Act, 1944 was filed against the Collector's order directing payment of duty under Rule 56A(5)(i) for wrongly utilizing credit in paying duty on plastic laminated sheets. The appellant contended they had permission to avail Rule 56A benefit and had followed prescribed procedures. The Collector reviewed the Assistant Collector's decision and directed duty payment, leading to the appeal.

2. The departmental representative argued that the Assistant Collector lacked authority to permit credit transfer, citing Notification No. 209/79. The records did not show any demand for duty repayment. The Tribunal noted the Collector's denial of credit was solely based on the Assistant Collector's permission, deeming it inequitable as the fault was not the appellant's.

3. The Tribunal found the Collector's order unjust, as it did not indicate any fault on the appellant's part but denied credit due to the Assistant Collector's authorization. Considering the circumstances, the Tribunal felt the Collector should have exercised discretion in favor of the appellant and confirmed the permission for credit transfer. Consequently, the Tribunal set aside the Collector's order and allowed the appeal in the interest of justice.