9911796707
TMI Blog2002 (11) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... r Rule 8 of the Central Excise Rules, 1944 (for short the Rules), the Central Government, by Notification No. 103/61, exempted synthetic organic dyestuff falling under Tariff Item No. 14D, manufactured wholly or partly out of the intermediates from the payment of so much duty of excise thereon as was equivalent to the amount of countervailing duty paid on imported intermediates. As a result of the Notification, the manufacturer of synthetic organic dyestuff became entitled to get credit for countervailing duty paid on raw materials utilised in the manufacture of said synthetic organic dyestuff at the time of payment of excise duty thereon. 3.By amending Notification No. 109/80, dated 19 June, 1980, the Central Government directed that Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount which it had utilised for clearance of the said finished products. It was further directed not to utilise the credit lying in balance in petitioner's RG 23 account and pay the duty within ten days of the receipt of the said letter. Later on the petitioner was again informed that permission to avail of the proforma credit under Rule 56A in respect of countervailing duty paid on imported raw material, falling under Tariff Item No. 68, could not be granted and that he was required to pay the duty due on the goods cleared on the strength of the provisional permission either by adjustment in the account maintained in terms of Rule 171G or in cash. They were directed not to utilise the amount of credit earned and lying in balance in RG 23 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as would fall under Tariff Item No. 68 whereas under Notification No. 109/80 procedure under Rule 56A was made mandatory for the purposes of availing of benefits of duty paid on the imported intermediates, as envisaged in Notification No. 103/61. It is also pointed out that though the amending Notification No. 109/80 was issued on 19 June, 1980, the petitioner company, for reasons best known to them, did not apply for the permission for availing the said exemption, nor did they follow the procedure laid down in Rule 56A. 8.We have heard learned Counsel for the parties. 9.To appreciate the controversy, it would be necessary to notice Rule 56A, which reads as follows : "56A. Special procedure for movement of duty paid materials or com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same Item 33 (***) as the finished excisable goods, or (b) remission or adjustment of duty paid for such material or component parts has been specifically sanctioned by the Central Government. Provided further that no credit of countervailing duty shall be allowed in respect of any material or component parts used in the manufacture of finished excisable goods, if countervailing duty has been paid in respect of such material, or component parts, as fall under Item No. 68 of the First Schedule to the Central Excise Salt Act, 1944 (1 of 1944)." 10.As the marginal note indicates, the Rule lays down a special procedure for movement of duty paid materials or component parts for use in the manufacture of finished excisable products. U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the petitioner. As noticed above, Rule 56A is designed to provide relief against the double incidence of duty under certain specified situations. Whether the relief is to be circumscribed by putting some special conditions is a matter beyond the pale of Court's jurisdiction. It is essentially a policy matter. The effect of the insertion of second proviso to sub-rule (2) of Rule 56A by Notification No. 104/79 is that no credit of countervailing duty is to be allowed in respect of any material or component parts used in the manufacture of finished excisable goods, if countervailing duty has been paid in respect of such material or component parts which fall under Tariff Item No. 68 of Central Excise Tariff. The language employed in the seco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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