9911796707
TMI Blog1983 (9) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... rmed the demand of ₹ 23,138.37 and directed the appellants to pay the said amount forthwith. 2. The facts necessary for the disposal of this appeal are few and simple. The appellants are the manufacturers of fans. They were permitted to avail proforma credit under Rule 56A of the Central Excise Rules, 1944 by the Assistant Collector of Central Excise on 9-1-1981 and they have utilised the credit of Central Excise duty paid on stampings and laminations amounting to ₹ 20,138.37 towards payment of duty on electric fans manufactured and cleared by them. By means of a letter dated 11-6-1981, the Assistant Collector informed the appellants not to avail proforma credit permitted earlier. Subsequently, Supdt. of Central Excise issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Excise Rules, 1944. In that view of the matter the Collector (Appeals), as stated earlier, rejected the appellants appeal and hence this second appeal. 3. During the hearing of the appeal, Shri D.R. Kohli the learned Consul- tant who has been authorised by the appellants, urged the following grounds :- (1) The Assistant Collector has no jurisdiction to review his own order and therefore withdrawal of permission granted to avail proforma credit is bad in law. (2) The Assistant Collector has not given any show cause notice before withdrawing the permission of availing proforma credit and thus there was violation of principles of natural justice. (3) According to the Notification No. 95/79 as amended, read with Trade No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the manufacture of electrical motors. It is further not disputed that the appellants availed of the proforma credit in respect of laminations and stampings used in the manufacture of electrical motors. The appellants however contended that they are entitled for proforma credit on excise duty paid on stampings and laminations towards payment of duty on electrical fans manufactured and cleared by them. Shri D.R. Kohli conceded that Exemption Notification No. 95/79 referred to in the appeal memo does not permit such concession. He, however, wants to rely on the Trade Notice issued by Bombay Collectorate dated 28-10-1980 and also the budget speech of the Finance Minister while presenting the Budget for 1980-81. According to Shri Kohli the Tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be said that the Assistant Collector had reviewed his own order and hence this ground has to be rejected. As regards the non-compliance of the natural justice is concerned, suffice to say that the withdrawal of the permission by itself has not resulted in any civil consequence. Subsequent to this letter, a show cause notice was issued to the appellants and the appellants have been given an opportunity to contest the demand made in the show cause notice. Therefore, it cannot be said that the appellant has been in any way prejudiced by the letter dated 11-6-1981. 7. Now coming back to the contention of the appellants that the Finance Minister s speech and the Bombay Collectorate s Trade Notice permitted availing of proforma credit of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty is consumed within the factory in the manufacture of the notified finished product. However, proforma credit will not be available if the fully exempted intermediate product is removed as such from the factory. 3. This facility will also be applicable to Notification No. 201/79-C.E., dated 4th June, 1979 whereunder the procedure for claiming benefit of duty paid on the inputs falling under Tariff Item 68 is provided for. This Trade Notice has not the effect of permitting availment of proforma credit twice, in respect of duty paid on stampings and laminations once at the stage of manufacture of motors and again at the stage of manufacture of fans. Since appellants have availed this credit facility for the motors manufactured they c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 56A of the Central Excise Rules to avail of the proforma credit of the Central Excise duty paid on the electrical stampings and laminations falling under T.I. 28A to be brought by the Company from outside for use in their factory in the manufacture of electric fans. Subject to the condition that the Company shall abide by provisions laid down in Rule 56A of the Central Excise Rules. Firstly, from the letter it is not clear that the Company in that case had availed proforma credit of Central Excise duty paid on electrical stampings and laminations used in the manufacture of motors. Therefore, this letter is of no assistance to the appellants. Annexure `C is a letter dated 17-1-1978 issued by the Assistant Collector of Central Excise, Cal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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