1985 (1) TMI 151 - AT - Central Excise

Summary

Issues:
1. Interpretation of notifications No. 178/77 and No. 201/79 regarding set off of duty paid on inputs.
2. Validity of demands under Rule 10 and Rule 9B of the Central Excise Rules, 1944.
3. Bar on time limit for demands under Notification No. 201/79.
4. Requirement of declaration under para 1 of the appendix to Notification No. 201/79 for clearances between specific dates.

Analysis:

1. The case involved the interpretation of notifications No. 178/77 and No. 201/79 regarding the set off of duty paid on inputs used in the manufacture of goods. The appellants claimed that the latter notification was brought to their notice by the Collector of Customs and Central Excises, Cochin. The dispute arose over the duty paid on inputs received and utilized within specific timeframes as per the notifications.

2. The demands raised by the Assistant Collector under Rule 10 and Rule 9B of the Central Excise Rules, 1944 were challenged. The Appellate Collector found that the demand under Rule 10 was time-barred for clearances made before a certain date. However, demands based on Notification No. 201/79 were considered without reference to time limits, as per the appendix to the notification.

3. The issue of time limits for demands under Notification No. 201/79 was crucial. The Appellate Collector upheld demands based on this notification beyond the usual time limits specified under Rule 10. The appellants argued that the time bar should apply even for clearances made before the notification's effective date, based on the reasoning that the notification was not available to them earlier.

4. The requirement of a specific declaration under para 1 of the appendix to Notification No. 201/79 for clearances during certain periods was contested. The appellants argued that the declaration they had made under a previous notification should suffice for the purposes of the later notification. The Tribunal agreed, noting that the earlier declaration covered the requirements of the subsequent notification, leading to the disallowance of the order disallowing credit for raw materials used during the relevant period.

In conclusion, the Tribunal set aside demands based on Rule 10 for clearances made before a specific date, upheld demands under Notification No. 201/79 without time limits, and allowed credit for raw materials used during specific periods based on the adequacy of previous declarations.