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TMI Blog1993 (9) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... dent Collector. 2. Miscellaneous Application 106/93 filed on 8-6-1993 is for the early hearing of the Stay Petition. This is allowed and the case posted accordingly. 3. Miscellaneous Applications 184/93 and 185/93 filed on 8-9-1993 contain the plea that the Stay Petitions filed by them may be heard by this Bench notwithstanding the fact that the amounts demanded in terms of the two impugned orders of the Collector of Central Excise have already been recovered by the departmental authorities by debit to their RG 23A Part II Account. Copy of the order dated 6-9-1993 passed by the Honourable Orissa High Court passed on the petition filed by the present applicants before as has been enclosed with the applications. The High Court has observe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany Affairs U.O.No. 24476/74 Advice (B), dated 29-10-1974. [Circular No. 10/75 CX. 6] Shri Gopal Prasad strongly pleaded that these authorities would clearly support their case. He added that without prejudice to their contention as above and assuming, purely for the sake of argument, that it was a case of modvat credit not available to them, the demand under Rule 57-I was not permissible as the same applies to credit taken on account of error, omission or misconstruction, or misstatement, collusion or suppression of facts. Only under these circumstances Rule 57-I would come into play. The present case is not falling under the said provision. 5. The learned Consultant then referred to the judgment of the Honourable Patna High Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with permission to them to utilise them. He submitted that the applicants had sustained large amount of losses. He handed over the copy of their Annual Report for 1992-93. 7. Shri N.K. Mandal, learned Departmental Representative contested the arguments advanced by the learned Consultant. He justified the orders appealed against. The duty credit earned on inputs used in the manufacture of final products which are exported under bond can be utilised for payment of duty on similar final products cleared for home consumption under the proviso to sub-rule (3) of Rule 57F only if the final products themselves are cleared for export under bond. Here the applicants final product was not exported. It was cleared for manufacture of another product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applies to inputs used in the final products cleared for export under bond or used in the intermediate products cleared for export in accordance with sub-rule (2).....The reference to use in the intermediate products cleared for export points to the clearance of the intermediate products to another factory for completion of manufacture and export of the final product therefrom. If the intermediate product itself is to be exported from the factory of the modvat user, then that will be the final product and not an intermediate product and will be covered by the first entry final products cleared for export . The clearance for export of the intermediate products is to be regulated by sub-rule (2). That sub-rule refers to the manufacturer r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of both Rule 57C and Rule 57F. We have already discussed the latter Rule above. The combined effect of both the provisions would appear to settle the matter in favour of the petitioners. 11. The copy of Stay Order passed by the North Regional Bench in a similar matter promised by Shri Gopal Prasad during the hearing was submitted by learned Counsel Shri Rajesh Kumar to the Bench on 14-9-1993. This is Stay Order No. 665/93-NRB, dated 25-8-1993 in Haryana Petrochemicals v. Collector of Central Excise, New Delhi. We have gone through the same. That is also a similar case. Stay has been granted, accepting similar arguments based on the decision of the Delhi High Court in Hindustan Aluminium Corporation and Finance Ministry s instructions dat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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