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TMI Blog1996 (6) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... rts are cleared by appellants free of duty, under bond, under Notification No. 167/79-C.E. as amended by Notification No. 187/79. The notification reads, The Central Government hereby exempts parts of accessories of motor vehicles and tractors including trailers falling under T.I. 68 of the First Schedule to the Act and intended for use in further manufacture of excisable goods either in the factory in which they are manufactured or in any other factory, from the whole of the duty of excise leviable thereof . Under proviso to this Notification, it is provided that where such duty is in a factory of another manufacturer, the exemption contained in this notification shall be allowable, subject to observance of the procedure set out in Chapte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ole of the duty of excise has to be interpreted in the proper perspective. The word used in this notification will be attracted only if the said goods were completely exempted from duty, like tyres for cycles water coolers etc. or the goods were totally exempted like slab exemptions granted under Notification No. 83/83-C.E. They referred to the Appellate Tribunal decision in the case of Paper Products, in which the Tribunal held that there is no requirement to exact correlation of the inputs to the output. In such circumstances the credit can be utilised at any time. 4. The learned Collector after due consideration rejected their plea. The learned Collector has held that Notification No. 201/79-C.E. clearly stated that the said goods are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the said goods which are cleared during the period of time. He has held that in that event, the entire duty on the said goods can be discharged from the credits available in their RG 23 account or credit of inputs duty account. in that case there will be a case of complete set off of 100% duty liability being set off from RG 23 account i.e. on the inputs duty credited to the assessee. He has held that this is not the intention of the notification and it is provided in the Notification that the Central Government exempts all set off goods on which duty of excise is leviable and in manufacture of it any inputs are used. Therefore, he has held that the exemption shall be from so much of excise duty leviable thereon as is equivalent to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set aside. He fairly submitted that the Tribunal in a similar case pertaining to Notification No. 201/79-C.E., dated 4-6-1979 had earlier denied the benefit of exemption notification as in the case of Vikrant Tyres Ltd. v. Collector of Central Excise, as reported in 1985 (21) E.L.T. 620. It is his contention that the Larger Bench decision in the case of J.K. Synthetics should be applied. It is his further contention that subsequently the benefit has been granted to them. It is also his contention that the Delhi High Court in the case of Goodyear India Ltd. v. Union of India as reported in 1990 (49) E.L.T. 39 has held that the extent of credit available in the account maintained in RG 23 can be utilised at the time of clearing of the produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h regard to one to one correlation between the inputs and the final product approved under Rule 57A of Notification 201/79. The Tribunal has upheld the ratio rendered in the case of IPCL v. Collector of Central Excise as reported in 1992 (61) E.L.T. 138. It is noticed that the issue in the present case is not pertaining to one to one correlation between the inputs and the final products. The issue is as to whether the benefit of the set off can be granted in respect of the goods which have been cleared under Chapter X procedure. Therefore, the judgment of the Delhi High Court rendered in the case of Goodyear India Ltd. is distinguishable and not applicable to the facts of the present case. We notice that the DR s contention in the present i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gar, Vice President]. - I observe that the appellants had obtained raw materials and components for manufacture of motor vehichle parts and claiming benefit of Notification No. 201/79 to obtain the credit of duty paid on these raw materials. Some of the motor vehicle parts manufactured by them were cleared on payment of duty and others were cleared without payment of duty (under Notification No. 167/79) as supplies to original equipment manufacturers. 13. A question which has arisen in this case is as to whether the credit utilised for the purpose of the goods cleared without payment of duty could be denied. In this respect I consider that the A.C. has rightly denied the benefit in view of second proviso to the Notification No. 201/79. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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