2000 (10) TMI 114 - AT - Central Excise

Summary

Issues:
Appeal involving common points of law regarding utilization of credit of duty paid on inputs for payment of duty on final products.

Analysis:
The three appellants, who are manufacturers of Sugar, Molasses, Ethyl Alcohol, and Denatured Spirit, sought to use the credit of duty paid on Molasses for payment of duty on sugar, invoking Rule 57F(12) of the Central Excise Rules, 1944. The Commissioner sought reversal of the credit utilized by the assessees. The Commissioner's stand was based on the interpretation that the credit of specified duty allowed in respect of inputs should be utilized towards payment of duty on final products in accordance with the declaration filed under Rule 57G. The Commissioner emphasized that the proviso cannot override the main rule, especially when it does not contain words requiring the provision of the main rule to be disregarded.

During the proceedings, the Bench observed that the conditions of Rule 57F(12) should be governed by the provisions of Rule 57C and Rule 57CC. The Bench highlighted that the credit could only be utilized if allowed under Rule 57C. The appellants claimed to have followed the route prescribed by Rule 57CC, supported by certificates from Jurisdictional Central Excise Officials. Upon reviewing the certificates, the Tribunal found that the appellants had passed the test of Rule 57CC. Consequently, the Tribunal concluded that the Commissioner's order was not valid, and the appeals were allowed with consequential relief.