9911796707
TMI Blog2000 (6) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... 92. Prior to the amendment, the rule was as follows : Rule 57C. Credit of duty not to be allowed if final products are exempt - No credit of the specified duty paid on the inputs used in the manufacture of a final product shall be allowed if the final product is exempt from the whole of the duty of excise leviable thereon or is chargeable to nil rate of duty. After this date, the amended rule read as follows : Rule 57C. Credit of duty not to be allowed if final product are exempt - No credit of specified duty paid on the inputs used in the manufacture of a final product (other than those cleared either to a unit in a Free Trade Zone or to a hundred per cent Export Oriented Unit) shall be allowed if the final product is exempt from the wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... EOU without payment of duty were always treated to be on different footings and credit had not been denied on the inputs. He placed reliance on the decision of CEGAT, West Regional Bench in the case of Reliance Industries Ltd. v. CCE Bombay - 1995 (78) E.L.T. 595 (Tribunal). In this decision the Bench relied on the judgment of Delhi High Court in Hindustan Aluminium Corporation - 1981 (8) E.L.T. 642 (Del.) and the Board's clarification issued on the scope of provision (i) to sub-rule (2) of Rule 56A (analogous to the provisions of Rule 57C) in which it is advised that the said proviso to Rule 56A(2) would not stand attracted, where the final products were exported under bond, since such removals could neither be construed to be exempted not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xemption Notification is No. 272/79, dated 18-10-1979 issued under Rule 8(1) for the goods supplied to the units in Kandla FTZ) this is not an exemption like that in other notifications. It is the contention of ld. Advocate that in this case the duty liability gets shifted to the unit in FTZ/100% EOU to whom the duty free goods are supplied and in case the conditions of the notification are not complied with, the duty is liable to be recovered from the receiving unit. It is also contended that the provisions of the Notification No. 272/79, dated 18-10-1979 are pari materia with those of Rules 191B and 191 BB and the ratio of the decision in respect of these rules will equally hold good for the clearances made under the said notification. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of goods mentioned against Sl. Nos. 1, 5, 6, 7,1 0, 12, 14 and 15 of the Table, the exemption shall not apply if credit of the duty paid on the inputs used in their manufacture had been availed under Rule 56A or Rule 57A. The Apex Court reversed the order of the Tribunal holding that since the party had availed the exemption on the end products, they would not be entitled to the Modvat credit on the inputs by virtue of the provisions of Rule 57C and observed that the Tribunal had not applied itself to the terms of second proviso which specifically made reference to items 1, 5, 6, 7, 10, 11, 12, 14 and 15 and that in respect of all the goods covered by these items the exemption given by the notification would not apply if the credit of the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the powers conferred by section 37 of the Central Excises and Salt Act, 1944 (1 of 1944), the Central Government hereby makes the following rules further to amend the Central Excise Rules, 1944, namely :- 1. (1) these rules may be called the Central Excises (Third Amendment) Rules, 1992. (2) These rules shall come into force on the date of their publication in the Official Gazette. 2. In the Central Excise Rules, 1944 (hereinafter referred to as the said rules), - (i) in rule 57C, for the words "in the manufacture of a final product", the words "in the manufacture of a final product (other than those cleared either to a unit in a Free Trade Zone or to a hundred per cent Export-Oriented Unit)" shall be substituted; (ii) in the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Public Notice No. 44-ITC(PN)/83, dated 17-10-1983 by which the import of item Isoborneol was prohibited by removing it from Open General Licence category to banned item and added as Item No. 61 of Appendix 3 whereby the import of this item were restricted to 90 days not only the prohibition of Isoborneol but for the earlier commitments made by irrevocable letter of credit. The Madras High Court relying on the rulings of the Supreme Court in the case of Cannanore Spinning and Weaving Mills Ltd. v. Collector of Customs and Central Excise, Cochin - 1978 (2) E.L.T. (J 375) (S.C.) and in M/s Bharat Barrel and Drums Manufacturing Co Pvt. Ltd. v Collector of Customs, Bombay - AIR 1971 SC 704 and in Union of India & Others v. Kanunga Industries ..... X X X X Extracts X X X X X X X X Extracts X X X X
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