9911796707
TMI Blog1983 (5) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... t (Photine `C ) classifiable under Item 15DD has been denied for the payment of duty on manufacture of O.S.A.A. falling under Item 15AA. The grounds for denial are that O.S.A.A. does not carry auxiliary duty of excise and therefore the Assistant Collector and the Appellate Collector have held that the auxiliary duty paid on optical bleaching agent cannot be permitted to be utilised under Rule 56A for the payment of any duty on O.S.A.A. The appellants have argued that the contentions of the Assistant Collector and the Appellate Collector are not correct. The learned representative Shri C.S. Lodha for the appellants explained that auxiliary duty is collected as a percentage of basic duty. in the present case of optical bleaching agent falling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1974. However, there was no auxiliary duty on O.S.A.A. The department, however denied the proforma credit of duty paid on optical bleaching agents towards payment of duty on O.S.A.A. on the grounds that there was no auxiliary duty on O.S.A.A. Shri Lodha argued that the levy of basic and auxiliary duties of excise is for the purpose of accounting and for the purpose of sharing the revenue between the Centre and the States and they are not relevant for the purpose of Rule 56A though they are required to be shown separately in R.G. 23 account. The credit of auxiliary duty paid on optical bleaching agent was still standing in the R.G. 23 account of the appellants as this was not allowed to be utilised by the department. In the present appeal, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Shri N.K. Pattekar for the department has opposed the submissions. He has argued that basic and auxiliary duties are separate and the utilisation of credit of auxiliary duty cannot be permitted towards payment of basic duty. He, further, submitted that Rule 56A was not merely a procedural rule as contended by the appellants. It has penal provisions also and in this behalf he drew our attention to Rule 56A(3)(v) under which the department could make a claim for payment of duty on goods which are not accounted for by the manufacturer. There are penal provisions also in the same rule. The departmental representative therefore submitted that the orders of the Assistant Collector and the Appellate Collector were correct. Since no auxiliary dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty can be permitted to be utilised towards the payment of the duty on any finished excisable goods. Applying the provisions of the aforesaid law to the facts under examination if would imply that the credit of auxiliary duty on Photine `C , optical bleaching agent, is permissible for payment of basic duty on O.S.A.A. The above views should decide the issue. However, before we conclude we have to examine one important issue raised by the appellants. The learned representative has submitted that under Notification No. 99/66, dated 17-6-1966, the basic duty on optical bleaching agent has been reduced to nil and therefore the auxiliary duty thereon would also be nil. Therefore, to give proper meaning to this notification, it is necessary that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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