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TMI Blog1987 (5) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... er dyes on which duty of excise or countervailing duty had already been paid. Solubilised Vats was specified as one of the dyes in the Schedule to that Notification. M/s Atic Industries Limited, the appellants herein, were manufacturing Synthetic Organic Dyestuffs falling under Tariff Item 14-D of the First Schedule to the Central Excises Salt Act, 1944, and were availing special procedure for movement of duty paid materials or component parts for use in the manufacture of finished excisable goods under Rule 56-A of the Central Excise Rules, 1944. They received 2000 Kg. Indigo Pure on which countervailing duty was paid as per Bill of Entry No. 936 dated 9-10-1975 and they took the credit of Rs. 66,153.68 on account of the said counterva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 11-A (2) of the Central Excises Salt Act, 1944. The order of the Assistant Collector was upheld by the Collector of Central Excise (Appeals), Bombay, by the impugned order. Being aggrieved by the impugned order, the appellants have come before us with the present appeal. 2. On the date of hearing before us, the learned Advocate has submitted written arguments on behalf of the appellants and also orally argued the points raised therein. The gists of his arguments are as follows :- (i) A consignment of 2000 Kg. Indigo Pure was imported on 29-12-1975 and countervailing duty of Rs. 66,153.68 was paid. On 15-1-76 the appellants requested to the Superintendent of Central Excise to allow proforma credit under Rule 56-A of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification was to be applied at the time of removal of the manufactured goods as held by this Tribunal in the case of Bharat Petroleum Corporation Ltd. v. Collector of Central Excise, Bombay, reported in 1984-(17)-E.L.T.-420(Tribunal). The Notification should be read in its plain term. According to the ratio of the judgment of the Supreme Court in the case of M/s. Hemraj Gordhandas v. H.H. Dave, Asstt. Collector of Central Excise and Customs, Surat and Others, 1978 (2) E.L.T. (3 350) and the judgment of Delhi High Court in Modi Rubber Ltd. v. Union of India and Others, reported in 1983 (12) E.L.T.-24-(DEL). In the present case the end product was manufactured out of the duty-paid Indigo Pure and the condition of the Notification was fulfill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ynthetic Organic Dyestuff which did not include Solatic Blue 4 BC. The permission for proforma credit given by the Proper Officer under Rule 56-A(2) did not extend to Indigo Pure used in Solatic Blue 4 BC. No proforma credit could, therefore, have been legitimately utilised by the appellants in respect of Solatic Blue 4 BC. Having availed of credit of Rs. 66,153.68 they were, therefore, bound to return the same under the provisions of Rule 56-A(3)(v) of the Central Excise Rules. The appellants have actually done the same by debiting the P.L.A. with Rs. 66,153.68. 3. The gists of arguments of learned S.D.R. for the respondent e the following :- (1) According to Rule 56-A(3)(vi)(a), the credit of duty allowed in respect of any material or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case and arguments of both sides. The following are the relevant admitted facts in this case: (i) Notification No. 180/61-C.E., dated 23-11-61 exempted dyes, one of which was solubilised vats, specified in the Schedule to the Notification and falling under Item 14-D of the Central Excise Tariff from the whole of the excise duty leviable thereon, if and only if such dyes are manufactured from any other dye on which duty of excise or countervailing duty had already been paid; (ii) Additional duty under Section 3 of the Customs Tariff Act, 1975 (c.v. duty) of Rs. 66,153.68 was paid on imported Indigo Pure which is also a dye; (iii) Appellants availed of proforma credit of the aforesaid amount of Rs. 66,153.68 in R.G. 23 Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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