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TMI Blog1986 (9) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... uty under Tariff Item No. 68. On 10-12-1979, the appellants filed a claim for refund on the ground that as per Notification No. 178/77 they are entitled to refund of the duty of excise paid in excess for the period from 1-8-1978 to 20-5-1979. As the products manufactured in their factory varied from one another they could not avail the set off earlier as there was difficulty in filing a statement showing the input and output. The Assistant Collector, Central Excise, Madras passed orders on 15-12-1979 permitting the appellants to take proforma credit of duty paid on the inputs falling under Tariff Item No. 68. On 13-12-1980, the Collector issued a notice under Section 35A stating that the vital condition for determining the refund was filing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Tariff Item No. 68 of the First Schedule have been used from so much of the duty of excise leviable therein as equivalent to the duty of excise already paid on the inputs. He laid emphasis on the word used and stated that, only after the use, the appellants would be in a position to furnish the statement of the inputs. He urged that particulars of inputs received on payment of excise duty for utilisation in the manufacture of air break switches fall under Tariff Item No. 68 were enclosed to the refund application. The Department has actually verified the particulars and have granted the refund. The learned counsel, therefore, urged that the appellants were not manufacturing the standard products but were manufacturing products accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, New Delhi and Another) the Madras High Court has held that unless the conditions of the notification are satisfied concessional rate of duty cannot be accorded. In 1986 (6) E.C.R. 297 (Cegat) (M/s Graucer Well (India) Ltd. Vapi v. Collector of Central Excise, Baroda), the Tribunal has observed that for availing duty exemption the assessee has not merely to stake a claim for exemption but should have the claim accepted by the proper authorities. 5. The refund has been granted by the Assistant Collector on the basis of Notification No. 178/77-C.E. as amended by Notification No. 295/77-C.E.. Notification No. 178/77-C.E. reads as follows : In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t a pre-condition that a statement of input and output ratio should be filed. In the Order-in-Review, it is stated that the manufacture should furnish in advance the formula indicating the input and output ratio for each unit of the output. This observation is also beyond the scope of the notification. In the order-in-review, the Collector has referred to certain representations by the manufacturers of tyres, chemicals, electrical manufacturers, etc. who had complained of difficulties in complying with the requirements of Notification No. 178/77-C.E. The Collector has observed that the new procedure under Notification No. 201/79- C.E. did away with the requirements of set off procedure under Notification No. 178/77- C.E. consequent to the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the excise duty or were chargeable to nil rate of duty. The appellants therein were permitted, within a period of two months from the date of communication of this order, to furnish to the proper officer the allocation of raw materials and duty thereon necessary for the purposes of the above calculation. The proper officer shall, in his best judgment, and after taking into account the calculations, if any, furnished by the appellants, determine the quantum of credit to be disallowed in terms of this order, and shall allow the balance of the proforma credit which is allocable to dutiable goods. Following the ratio there is no error in granting the refund in favour of the appellants herein. 7. The learned counsel raised a question of time ..... X X X X Extracts X X X X X X X X Extracts X X X X
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