1985 (10) TMI 212 - AT - Central Excise

Summary

Issues:
1. Condonation of delay in filing the appeal.
2. Admission of the appeal involving interpretation of Rule 56-A.
3. Merits of the case regarding the lapse of special excise duty credit.

Condonation of Delay:
The Collector of Central Excise, Bombay-II, filed an appeal against an order granting Rule 56-A concession to M/s. Garware Paints Ltd., with a delay of 9 days. The Departmental Representative requested condonation based on consultation with officers. The Tribunal considered the short delay due to obtaining facts from the Assistant Collector as pardonable and thus condoned the delay in filing the appeal.

Admission of the Appeal:
The appeal involved an interpretation of law, specifically Rule 56-A, despite the amount being less than Rs.10,000. The Departmental Representative argued that the appeal raised an important issue that would impact Central Excise Authorities. The Tribunal admitted the appeal for hearing and decision on merits, refraining from refusing admission based on the significance of the legal issue involved.

Merits of the Case - Lapse of Special Excise Duty Credit:
The appeal addressed the issue of whether the special excise duty credit of M/s. Garware Paints Ltd. should be treated as lapsed following the removal of special excise duty on paints under a notification. The Collector contended that the credit lapsed per Rule 56-A provisions. However, the Tribunal found that the interpretation of the Collector was incorrect. Rule 56-A did not support the contention that the credit should lapse when duty is removed. The Tribunal highlighted that special duty of excise is levied annually and must be administered as such, allowing the credit to be utilized towards payment of duty on finished goods. Consequently, the Tribunal dismissed the appeal of the Collector, Central Excise, Bombay-II, upholding the order of the Collector (Appeals) in favor of M/s. Garware Paints Ltd.