9911796707
TMI Blog2001 (8) TMI 537X X X X Extracts X X X X X X X X Extracts X X X X ..... para 5 of the AC s order-in-original dated 11-8-1995 which is extracted herein below :- 5. Out of credit of Rs. 78,31,854/- lying on or after 16-3-1995, Rs. 51,01,900/- relates to the amount sanctioned earlier vide AC s letter C. No. IV/16/151/94 dated 15-3-1995, and Rs. 7,80,728/- relates to the amount now sanctioned at para 3 above. And out of the remaining balance of Rs. 19,49,226/-, Rs. 8,31,994/- relates to the amount disallowed earlier and which is now under subjudice, Rs. 1,15,512/- relates to the amount disallowed in the order at para 3 above and Rs. 10,01,720/- relates to the amount of credit which was taken prior to 16-3-1995 and the stocks of export brand cigarettes manufactured out of cut tobacco used in the manufacture or such cigarettes, are still lying unexported. 2. The Commissioner (Appeals) in para 7 of his order, has discussed the whole matter thoroughly and has held that the duty paid on the cut tobacco already used in the manufacture of cigarettes lying unexported does not fall within the purview of Rule 57H(3) and he therefore found no infirmity in the adjudication order and therefore rejected the appeal. 3. Ld. Advocate Ms. Mythili has submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs is less than the duty liable to be paid on the final products and thus the credit of duty earned on inputs gets fully utilised and some amount has to be paid by the manufacturer by way of cash. Prior to 1995-96 Budget, the excise duty on inputs used in the manufacture of tractors, commercial vehicles varied from 15% to 25%, whereas the final products were attracted excise duty of 10% or 15% only. The value addition was also not of such a magnitude that the excise duty required to be paid on final products could have exceeded the total input credit allowed. Since the excess credit could not have been utilised for payment of the excise duty on any other product, the unutilised credit was getting accumulated. The stand of the assessees is that they have utilised the facility of paying excise duty on the inputs and carried the credit towards excise duty payable on the finished products. For the purpose of utilisation of the credit all vestitive facts or necessary incidents thereto have taken place prior to 16-3-1995 or utilisation of the finished products prior to 16-3-1995. Thus the assessees became entitled to take the credit of the input instantaneously once the input is rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessees. She also invited our attention to para 6 of the said judgment which is extracted herein below :- 6. We may look at the matter from another angle. If on the inputs the assessee had already paid the taxes on the basis that when the goods are utilised in the manufacture of further products as inputs thereto then the tax on these goods gets adjusted which are finished subsequently. Thus a right accrued to the assessee on the date when they paid the tax on the raw materials or the inputs and that right would continue until the facility available thereto gets worked out or until those goods existed. Therefore, it becomes clear that Section 37 of the Act does not enable the authorities concerned to make a rule which is impugned herein and, therefore, we may have no hesitation to hold that the rule cannot be applied to the goods manufactured prior to 16-3-1995 on which duty had been paid and credit facility thereto has been availed of for the purpose of manufacture of further goods. 5. Ld. Counsel has therefore argued that it becomes clear that which is impugned herein, the Supreme Court had no hesitation to hold that the rule cannot be applied to the goods manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y in respect of manufacturers availing (a) special procedure of Rule 56A (proforma credit) and (b) an exemption for giving credit with respect to duty paid on the materials or component parts used in the manufacture of finished excisable goods. In appellants case, special procedure of Rule 56A is not applicable. There is also no exemption for giving credit with respect to duty paid on the materials or component parts i.e. cut tobacco used in the manufacture of finished excisable goods. Moreover, the transfer of credit can be permitted under Rule 57H(3) only in respect of duty paid on materials or component parts received by the manufacturer but lying unutilised immediately before the dated acknowledgement of the declaration under Rule 57G. In the instant case, cut tobacco had already been utilised in the manufacture of cigarettes. Therefore, the duty paid on the cut tobacco already used in the manufacture of cigarettes lying unexpected, does not fall within the purview of Rule 57H(3). In view of the foregoing, ORDER I find no infirmity in the adjudication order. Appeal is accordingly rejected. 9. In view of above position, we do not find any infirmity in the adjudication o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
