9911796707
TMI Blog1984 (6) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... re that the appellants M/s. Chemiequip Ltd. are the licensed manufacturers of Synthetic Organic Dyestuffs falling under Excise T. Item 14-D. They were using indigenous as well as imported duty paid raw materials and were availing proforma credits in respect of the excise duty/countervailing duty paid on such raw materials in accordance with the permission granted to them under Rule 56-A of the Central Excise Rules, 1944 (to be hereinafter referred to as the Rules). 3. On 11-4-1978, the appellants received a consignment of 993 kgs. of imported Alpha Napthol a raw material used in the manufacture of finished S.O. Dyes viz., Brown Black T. Supra. The appellants cleared the consignment on payment of Customs duty amounting to ₹ 25,136.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there was no question of availing proforma credit as such. Sending of D. 3 intimation to the Jurisdictional Excise Officers did not arise. The availing of proforma credit arose only when there was less charge demand and when that demand was complied with. The less charge demand was on 26-6-1978 after a period of nearly three months after the raw materials were received in the factory and the demand was complied with on 7-8-1978. By that time considerable quantity of imported raw material were consumed in the manufacture of the finished product. In the said circumstances, the appellants could not send D-3 intimation. He therefore prayed that the orders passed by the authorities below may be set aside and that the appellants may be permitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he manufacturer for the raw materials consumed in the finished goods. The sine qua non for the availment of proforma credit by the manufacturer was the prior payment of excise/countervailing duty for the raw materials which were to be consumed in the finished product. Since the appellants did not pay any countervailing duty when they cleared the imported goods they could not avail of the proforma credit. If they were not availing of proforma credit there was no obligation to send intimation to the Proper Officer, as to the receipt of the goods. The availment of proforma credit arose when there was less charge demand and when that demand was complied with on 7-8-1978. The appellants have contended that by that time they had consumed the impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he rules if they allowed a manufacturer to avail of the proforma credit even though the manufacturer had not strictly complied with the procedural aspect. It is not the letter of law that is important but the spirit behind it. The Asstt. Collector as well as the Appellate Collector overlooked the circumstances under which the appellants could not send prior notice or D-3 intimation to the Proper Officer before the receipt of the raw material in their factory. The Assistant Collector as well as the Appellate Collector appeared to have proceeded in a mechanical manner. The subsequent amendment made to Rule 56A also goes to show that prior notice or D-3 intimation is not a must in all circumstances. Sub-rule (2B) was amended on 30-1-1982 and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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