9911796707
TMI Blog1987 (2) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... re used as component parts in the manufacture of electric fans and regulators falling under TI-33 CET. When such rotors and stators are captively consumed in the manufacture of electric fans as aforesaid the whole of the duty payable on such rotors and stators are exempt under notification No. 28/69-C.E., dated 1-3-1969. Under notification No. 95/79-C.E., dated 1-3-1979 the duty paid on the electric stampings and laminations is entitled to be set off on the duty payable on the rotors and stators. The appellants did not want to avail of the exemption under notification No. 28/69-CE and were willing to pay duty on the rotors and stators. The Assistant Collector Central Excise, Calcutta VII Division, under letter, dated 12-12-79, allowed the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accordance with the Central Excise Law as is, and was, in force at the relevant time . Thereupon the appellants approached the Assistant Collector for revival of earlier procedure. But the Assistant Collector issued notice, dated 25-6-1982 directing the appellants to show cause why they should not be disallowed to utilise the unutilised credit in the PLA and why an amount of Rs. 2,50,284.22 Paise (basic excise duty) and Rs. 12,515.12 Paise (special excise duty) equivalent to the amount utilised by way of proforma credit for payment of duty on electric fans (out of duty paid on stampings and laminations during the period December, 1980 to May, 1982) should not be recovered from the appellants and why penalty should not be imposed on them. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss they were willing to pay duty on the rotors and stators they would not. be entitled to take credit of the duty paid on the stampings and laminations. But (evidently following a Trade Notice, dated 21.7.1980 of the Calcutta Collectorate) the appellants had sent letter, dated 12.11.1980 seeking for permission to take credit of the duty paid on the stampings and laminations in payment of duty on electric fans and regulators and this had been permitted by the Assistant Collector under letter, dated 3.12.1980. But subsequently the Assistant Collector under letter, dated 3.6.1982 had withdrawn this permission on the ground that the said permission was not available in law. After the withdrawal of the said permission the appellants appear to ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It was only as a consequence of a Trade Notice issued by the Collector that they approached the Assistant Collector and obtained specific orders from him under letter, dated 3.12.1980 that they could take credit of the duty paid on the stampings and laminations and avail of the said credit to pay the duty on the fans and regulators. Thus the payment of duty out of the said credit had been, throughout the relevant period, under specific permission granted by the Department. In view of all the above circumstances, we are satisfied that if, subsequently, the department itself withdraws the said permission, on the ground that the permission had not been properly granted, the denial of the benefit of the said arrangement could be effective onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the demand for additional duty in this case under TI-68 can be held enforceable only with effect from the date of issue of the first show cause notice i.e.28.4.1980. 8. We feel that in the present instance also, following the same principles, we should hold that the relief granted under letter, dated 3.12.1980 cannot be allowed to be withdrawn for the period prior to the cancellation of the said permission on 3.6.1982. Accordingly,we hold that the demand made in the subsequent notice,dated 25.6.1982 should not have been confirmed by the Collector even for the limited period of six months prior to the date of the notice. Accordingly,we allow this appeal and set aside the order of the Collector with consequential relief. - - TaxTMI - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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