1991 (2) TMI 268 - AT - Central Excise

Summary

Issues:
1. Condonation of delay in availing proforma credit of duty paid on Acetone.
2. Application of Rule 56A and its provisions.
3. Discretion of the Collector in granting proforma credit.
4. Communication of notifications and responsibility of manufacturer.
5. Eligibility for proforma credit and time-barring aspect.

Analysis:

1. The appellants sought permission to avail proforma credit of duty paid on Acetone used in manufacturing filter rods for cigarettes. The delay in filing the application was attributed to lack of awareness regarding the facility. The Assistant Collector rejected the request for condonation of delay, emphasizing non-compliance with Rule 56A provisions.

2. The Collector upheld the rejection, stating insufficient reasons provided by the appellants for the delay. The appellants contended that their claim was legitimate and requested verification of relevant documents. The Proviso to sub-rule (2B) of Rule 56A was highlighted by the appellants' consultant, arguing for condonation of the technical delay.

3. The appellants argued that the delay was due to late communication of the notification, asserting a vested right under Rule 56A. The Collector's rejection was supported by the Senior Departmental Representative (SDR), who cited trade notices circulated to inform about the procedural requirements.

4. The Tribunal considered the grounds of appeal and submissions from both sides. It was noted that the appellants failed to demonstrate any delay in communication of the notification, as trade notices were issued timely. The responsibility to apply for proforma credit rested with the manufacturer, not the departmental authorities.

5. Ultimately, the appeal was rejected by the Tribunal, affirming the Collector's decision. The Cross Objection filed by the respondents was allowed. Another member of the Tribunal concurred with the decision, citing previous cases where appeals were dismissed due to non-compliance with Rule 56A provisions, strengthening the Department's stance on time-barring aspects.

This detailed analysis of the judgment highlights the issues surrounding the condonation of delay, application of Rule 56A, discretion of the Collector, communication of notifications, and the eligibility for proforma credit in the context of the legal proceedings.