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TMI Blog1992 (10) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... c Anhydride in the appeal of M/s. Indian Dye-Stuff Industries Ltd. on the ground that these articles which were classifiable under Item 68 of the erstwhile Central Excise Tariff became classifiable under Item 14AAA after the amendment of the tariff w.e.f. 17th March, 1985 in the Budgetary changes of that year. The question is whether the set off of duty on the quantities lying in stock before the amendment would be eligible for exemption from duty after the amendment when they were "used" in the manufacture of the finished product after that date. 2. Both the appellants have taken the stand that since the inputs were classifiable under Item 68 upto 16-3-1985 and the credit of duty was taken by them after complying with the prescribed proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Central Excises and Salt Act, 1944 (1 of 1944) (hereinafter referred as "the inputs") have been used, from so much of the duty of excise leviable thereon as is equivalent to the duty of excise already paid on the inputs : Provided that the procedure set out in the Appendix to this notification is followed: Provided further that nothing contained in this notification shall apply to the said goods which are exempted from the whole of the duty of excise leviable thereon or are chargeable to nil rate of duty. APPENDIX 1. A manufacturer of the said goods shall give a declaration to the Superintendent of Central Excise having jurisdiction over his factory, indicating the full description of the said goods intended to be manufactured in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause of the language of the notification. The substantive portion of the notification does not refer to the credit of duty paid on the inputs taken by a manufacturer. The provision relating to taking of credit contained in Clause (2) is part of the procedure set out in the Appendix. It is, therefore, clear that the inescapable consequence of the re-classification of the inputs under an item different from Item 68 was to make the appellants ineligible for the exemption. 5. The decision of the Punjab and Haryana High Court cited by the appellants relates to a case on MODVAT credit the scope of which is very different from the scope of Notification No. 201/79. Moreover, the entire scheme of MODVAT has been designed with a view to avoiding cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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