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TMI Blog1987 (10) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... ry producers, and aluminum scrap purchased from open market. 2. Central Excise duty is leviable on aluminum wire bars under Tariff Item No. 27(a)(ii), while aluminum strips, plates, circles and sheets, and aluminum circles having thickness of above 0.56 mm., but not above 2.00 mm. fall under Tariff Item No. 27(b) of the First Schedule to the Central Excises and Salt Act, 1944 (hereinafter referred to as "the Act"), 'Aluminum' is mentioned under Tariff Item No. 27. 3. Rule 56A of the Central Excise Rules prescribes a special procedure for movement of duty paid materials or component parts for use in the manufacture of finished excisable goods. Sub-rule (1) of Rule 56A says : "Notwithstanding anything contained in these Rules, the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se leviable thereon, or are chargeable to nil rate of duty. The proviso prescribes yet another condition, namely, that the duty must have been paid for such material or component parts under the same item as the finished excisable goods, or remission or adjustment of duty paid for such material or component parts has been specifically sanctioned by the Central Government. It is not necessary to notice the other provisions of the rule. 7. The petitioner was permitted by the Assistant Collector of Central Excise, Hyderabad-III Division, through his letters dated 20-4-1981 and 24-7-1981 to avail of the concession provided by sub-rule (2) of Rule 56A, to receive duty paid aluminum ingots, falling under Tariff Item 27(a)(i), subject to the obse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Twenty per cent ad valorem; 9. The proviso appended to the notification, however, says : "..... in respect of goods specified against Serial Nos. 2, 5, 7, 8, 9, 10, 11 and 12 of the said Table and manufactured from aluminum of any description mentioned in Column (3) of the said Table on which the duty of excise or the additional duty leviable under Section 3 of the Customs Tariff Act, 1975 (51 of 1975) has been paid, the exemption contained in this notification in respect of such goods shall apply only if an officer not below the rank of Assistant Collector of Central Excise is satisfied that the said duty or the additional duty, as the case may be, had been paid at the rates specified in this notification or in the notification of the G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proved by the Assistant Collector on 6-2-1982, with effect from 11-1-1982. On 10-8-1982, the Assistant Collector directed the petitioner not to avail of any proforma credit of the duty paid on alumnium ingots purchased by it from out of the duty paid on the goods manufactured by it. The letters reads as follows :- "CENTRAL EXCISE, HYDERABAD III DIVISION, SECUNDERABAD ______ C.No. V/27/17/28/82. Dated : 10-8-1982. To To M/s. Galada Continuous Castings Ltd., LA No. 2/73 (Aluminum), UPPAL. (Through the Supdt., C.E., Uppal II Range). Sir, Sub : Central Excise - Approved classification List - Reg. Please refer to your classification list Serial No. IOA/82 approved in this office letter C.No. V/27/17/28/82, dated 6-2-1982. Aluminum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whereupon it approached this Court, while the respondents say that while the petitioner's representation was under consideration, it rushed to this Court by way of this writ petition. Be that as it may, this writ petition was filed on 25-8-1982 and an interim order obtained suspending the operation of the said letter/order dated 10-8-1982. 13. Counsel for the petitioner, Sri S. Parvatha Rao, assails the correctness of the reasoning contained in, and the basis of the impugned letter/order. The fact that the petitioner is availing of the benefit of the notification dated 3-12-1981, Counsel says, cannot be a ground for denying the benefit of Rule 56A(2) to the petitioner. He questions the assumption of the Assistant Collector that by allowing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, i.e., No. 67/82-C.E., dated 28-2-1982 as amended on 1-3-1983 and 13-5-1983, also contains a proviso that "nothing contained in this notification shall apply to a manufacturer who avails of the special procedure prescribed under Rule 56A of the Central Excise Rules, l944 , in respect of the duty paid on the base paper or base paper board". A similar provision is contained in yet another notification, bearing No. 208/83-C.E., dated 1-8-1983. 16. In the circumstances, there is ample force in the contention of the learned Counsel that the petitioner, by availing of the benefit of the notification dated 3-12-1981, is not deprived of the benefit of proforma credit under Rule 56A. Of course, it goes without saying that for availing of eithe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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