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TMI Blog1999 (12) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... r different tariff items or sub-items then they must be covered by the specific sanction of the Central Government granting remission or adjustment of duty on those inputs as provided by proviso (ii) (b). Admittedly there is no such specific sanction. The raw materials consumed being excisable under Tariff items different from the one under which the finished products are excisable the appellants have been rightly denied benefit of proforma credit. Assessee appeal dismissed. - 6990 of 1999 - - - Dated:- 7-12-1999 - S.P. Bharucha, R.C. Lahoti and N. Santosh Hegde, JJ. [Judgment per : R.C. Lahoti, J.]. - Leave granted. 2.The appellants manufacture and sell asbestos cement products such as sheets (corrugated or plain), pressure pip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Constitution which also has been dismissed. The decision of the High Court under appeal is reported as 1987 (32) E.L.T. 28 (A.P.). The High Court has for itself analysed and examined the provisions of Rule 56A. The High Court has also cited in its support a Division Bench decision of the High Court of Gujarat in Digvijay Cement Company Limited v. Union of India - 1986 (25) E.L.T. 879. The aggrieved appellants have filed this special leave petition. 3.The sole question arising for decision is whether the benefit of proforma credit procedure specified in Rule 56A(1) is available to the appellants though the raw materials consumed by the appellants in their manufacture of the final products are excisable under tariff items different from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit of duty shall be allowed in respect of any material or component parts used in the manufacture of finished excisable goods - (i) if such finished excisable goods produced by the manufacturer are exempted from the whole of the duty of excise leviable thereon or are chargeable to nil rate of duty, and (ii) unless - (a) duty has been paid for such material or component parts under the same item or sub-item as the finished excisable goods; or (b) remission or adjustment of duty paid for such material or component parts have been specifically sanctioned by the Central Government; Provided further that if the duty paid on such material or component parts (of which credit has been allowed under this sub-rule) be varied subsequently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose of taking proforma credit, must not be used in the manufacture of such finished excisable goods as are exempt from the whole of the duty of excise leviable thereon or are chargeable to nil rate of duty; and (iv) (a) the duty as has been paid for such material or component parts must have been so paid under the same item or sub-item as the finished excisable goods, or (b) if the raw material or component parts are not excisable under the same item or sub-item as the finished excisable goods, or in other words if such material or component parts are excisable under an item or sub-item other than the one under which the finished goods are excisable then the Central Government should have specifically sanctioned remission or adjustment of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. 9.We are in no doubt that to avail the benefit of proforma credit under Rule 56A the inputs which go to manufacture the specified finished excisable goods must be eligible to payment of duty under the same tariff item or sub-item; or else, if such inputs are exigible to tax under different tariff items or sub-items then they must be covered by the specific sanction of the Central Government granting remission or adjustment of duty on those inputs as provided by proviso (ii) (b). Admittedly there is no such specific sanction. The raw materials consumed being excisable under Tariff items different from the one under which the finished products are excisable the appellants have been rightly denied benefit of proforma credit. 10.We f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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