9911796707
TMI Blog1999 (4) TMI 385X X X X Extracts X X X X X X X X Extracts X X X X ..... and paragraph (5) of notification 175/86. 2. Rule 57B of the Central Excise Rules 1944 and paragraph 5 of notification 175/86 as they both stood at the relevant time, March, 1993, are set out below: "57B: Notwithstanding anything contained in rule 57A credit of specified duty on inputs may, in a case where the duty on inputs has been paid under a notification issued under sub-rule (1) of rule 8 or sub-section (1) of section 5A of the Act, as the case may be, exempting such inputs from a part of the duty leviable thereon on the basis of value of clearances of such inputs during any specified period, be allowed at the rate otherwise applicable to such inputs but for the said notification. Provided that the said notification provides f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicable but for the notification generally is less. 4. Notification 175/86 was rescinded with effect from 1st April, 1993 and was not in existence when the appellant took the credit. The department was therefore of the view that the benefit of higher credit (which is normally referred to in the department and among the trade as notional credit) could not be available. Notice was issued demanding the duty on this part of the credit, and was confirming it by the Assistant Collector's order was also confirmed by the Collector (Appeals). 5. The advocate for the appellant contends that when the duty was paid it was under notification 175/86. Therefore notwithstanding that the notification is not in existence when the credit was take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e extent of credit that could be taken as such notional credit. Such credit would vary upon the extent of exemption granted. The objective of this provision evidently is to provide an incentive to small scale industries. They could provide competition to the units in the organised sector by lowering the prices to the extent of the duties paid by manufactures in the organised sector. Buyers of these goods on the small scale industries would have the additional benefit of the credit. 9. The authority to take credit is those in rule 57B and not in the notification. When the goods in question were cleared on payment of duty under notification it was right conferred on their ultimate user to take credit at the higher rate specified at para ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
