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TMI Blog1988 (11) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent. [Order per : S. Kalyanam, Member (J) (oral)]. The above appeals arising out of the common impugned order of the Collector of Central Excise (Appeals), Madras, dated 27-1-1988 have been filed by the Collector of Central Excise, Hyderabad. 2. The short question that is canvassed before us by Shri Vadivelu, the learned D.R., is that the Respondents herein are manufacturing HDPE sac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 8-9-1987, which on appeal was set aside under the impugned order by the Collector of Central Excise (Appeals), Madras, dated 27-1-1988 out of which the present appeals arise. 3. The learned D.R. mainly contended that the reasoning of the lower appellate authority that the intermediate product is only semi-finished sacks and not fabric is not correct. It was urged that the intermediate product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty, even then the Respondents would be entitled to pro-forma credit under Rule 56A if the input and the finished product fall under the same tariff heading. 5. We have carefully considered the submissions made before us. In the present case tapes are used as an input for the ultimate manufacture of HDPE sacks and both fall under the same Central Excise Tariff heading as it then stood at the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... racted below : It is seen that Trade Notice of this kind is an authoritative interpretation of the department which would be governing a large number of units availing the Rule 56A procedure. In the face of such a clarification from the department, with which we cannot find any obvious fault, the department s dispute based on abstractions cannot carry any conviction. It is true that the inputs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Bombay High Court ruling referred to above, we hold that the finished product is entitled to the benefit of exemption from payment of duty in terms of Rules 9 and 49 of the Central Excise Rules. So far as the question of refund is concerned, we agree with the order of remand in this regard passed by the Collector of Central Excise (Appeals), Madras. In the result the appeals are dismissed and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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