1979 (7) TMI 92

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..... ication is decided. 2. The petitioners are manufacturers of articles of polyurethane falling under Tariff Item 15A(4) of the Central Excise Tariff. These articles are manufactured out of duty paid polyurethane falling under Tariff Item 15A(3). During the relevant period the petitioners manufactured articles known in the trade as side skin, top skin, bottom skin and shredding after availing the facility of proforma credit under Rule 56A of the Central Excise Rules, 1944. The Assistant Collector issued a demand for the recovery of the proforma credit availed in respect of these four articles on the ground that these articles fell within the scope of Exemption Notification No. 68/71, dated 29-1-1971 which granted full exemption and according .....

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..... . They have also pleaded that Rule 10A would not be applicable in the instant case. 5. Government observe that there is no force in the petitioners 'contentions that the Appellate Collector did not have jurisdiction to hold that sheading is scrap covered by Notification No. 68/71. Section 35 of the Act, which deals with appeals, provides that the Appellate authority "may make such further enquiries and pass such orders as it thinks fit, confirming, altering or annulling the decisions or orders appealed against; provided that no such orders and appeals shall have the effect of subjecting any person to any greater confiscation or penalty than has been adjudged against him in the original decision or order." The above provisions would enabl .....

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..... I New India Life Assurance Co. I* v. I C.I.T I* . - (1957) 31 I.T.R. 894 and I Central Caura Co. (P) Ltd. I* v. I Govt. of Madras I* - 1971 (27) S.T.C. 112. have held that the Appellate authority cannot burden the assessee with higher liability, because the normal rule of law is that any party not appealing from a decision will be bound by the decision and an Appellate authority while dealing with an appeal would not pass an order prejudicial to the party that has appealed against a decision. The Courts have further held that an appeal as the word indicates is a request for reduction and the worst that can happen to the appellant is that his appeal would be dismissed. Thus the word `alter' in Section 35 cannot be read as conferring a .....

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