9911796707
TMI Blog1984 (6) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... e summarised as below. 2. The appellant are manufacturing bituminised water-proof paper using kraft paper as raw material, and availing of the benefit of set off in terms of Rule 56A of the Central Excise Rules, 1944. Credits had been taken in respect of kraft paper received up to 1-7-1976, the date when the procedure for clearance of bituminised water-proof paper was changed by the appellant from the one under Rule 56A to that under Notification No. 184/76. Duty has been paid under protest on bituminised water-proof paper at the full rate between 16-3-1976 and 7-12-1976 (the appellant had claimed that they were liable to pay only 25% of the normal duty in terms of Notification No. 45/73 hence the protest). Though initially the Departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is not a payment from out of the credit in RG 23 account per se but a refund of the duty paid on the finished product. Hence, the appeal should be allowed. 4. On the other hand, the Senior Departmental Representative refers to the object of the concession set out in Rule 56A, viz. to reduce the cascading effect of duties on certain class of products in the manufacture of which duty paid raw materials or components or parts are used and point out that Rule 56A has been so framed that no part of the duty paid on the raw material, which would be in excess of the duty payable on the finished product, would be set off. In particular, he invited our attention to the provisions of Rule 56A(3)(via) which dealt with a special situation with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... special and specific situation where the duty on the raw material is found to have been adjusted at a lower amount or in excess and not an adjustment of excess duty in respect of the finished product. 6. We also note the observation made by the representative of the appellants that at the time when the procedure under Rule 56A was discontinued on 30-6-1976 there was a credit of little over ₹ 20,000 in RG 23 account of the appellants, which just lapsed. 7. Rule 56A(3)(vi)(b) is categorical in providing that no part of a credit in the RG 23 account shall be refunded in cash or by cheque. We accept the contention of the Senior Departmental Representative that what cannot be permitted directly cannot be allowed to happen indirectly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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