1984 (9) TMI 291 - AT - Central Excise

Summary

Issues:
1. Interpretation of Rule 56A(3)(i)(c) of Central Excise Rules - Mandatory or Directory?
2. Denial of proforma credit for non-compliance with Rule 56A(3)(i)(c).

Analysis:

Issue 1: Interpretation of Rule 56A(3)(i)(c) - Mandatory or Directory?
The Tribunal clarified that the question of whether Rule 56A(3) is mandatory or directory was not essential for the decision. The Tribunal noted the appellant's argument that the rule is directory, while the Departmental Representative contended it is mandatory and only the Central Government can relax it. However, the Tribunal deemed it unnecessary to give a verdict on this matter as it was not crucial to the case at hand. Therefore, the first question did not need to be referred to the High Court.

Issue 2: Denial of Proforma Credit for Non-compliance with Rule 56A(3)(i)(c)
Regarding the second question, the Tribunal examined a case where the applicant was importing aluminum sheets for fabrication into refrigerating and air-conditioning appliances, seeking a concession under Notification No. 95/79. The notification required compliance with Rule 56A of the Central Excise Rules. The Tribunal found that there was an unexplained delay in submitting the necessary forms as per Rule 56A(3). The Tribunal emphasized that statutory provisions should not be interpreted in a way that renders them redundant. Since there was no provision for condonation of delays and no explanation provided for the delay, the applicant was not entitled to the concession. The Tribunal also noted that even though Rule 56A(2) had specific provisions for non-allowance of relief, the absence of such provisions in Rule 56A(3) did not change the outcome. Ultimately, the Tribunal concluded that the question raised regarding denial of proforma credit did not warrant a reference to the High Court.

In conclusion, the application for reference to the High Court was rejected by the Tribunal based on the analysis and findings related to the interpretation of Rule 56A(3) and the denial of proforma credit for non-compliance with the rule.