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TMI Blog1991 (2) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... vailed set off provisions of duty under Notification 432/86, dated 6-10-1986 and that duty rebate under Rule 12 read with Notification 197/62 was available only to the extent of the actual duty paid on the goods exported out of India and not for the duty paid on raw material which had gone into the production of finished goods, there was no duty paid for purpose of Rule 12 ibid. 2. In the personal hearing held on 14-12-1990 Sh. M.L. Lahoty, Advocate alongwith S/Shri Madan Gulla, M.L. Sharma, J.K. Jain representing the applicant appeared. Shri Lahoty besides reiterating the arguments raised in the Revision Application averred that the applicants were eligible for grant of rebate of duty since the goods have been exported after payment of du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal in the case of M/s. Amar Dye-Chem. Ltd., v. Collector of Central Excise, Bombay - 1987 (31) E.L.T. 973 (Tribunal) = 1987 (13) ECR 457 (CEGAT SB-C). 3. Government after going through the Revision Application and arguments advanced at the time of personal hearing observe that the short point for consideration is whether an exemption on final product beyond what is already paid on the input means duty paid on the final product to the extent it is borne by the input and whether such exemption means adjustment of duties on final product vis-a-vis credit of duty taken on inputs as envisaged under Rule 56A or for that matter even under the MODVAT Scheme so as to entitle the products to export rebate under Rule 12. 4. Prima facie the two co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstrumentalities like cash payment in the Government accounts, reversal of entries in given situations, accruals of credits on account of different schemes like proforma credit system prescribed in Rule 56A. Similarly, payment of duty can also be made by debiting R.G. 23 ft. II relating to MODVAT procedure. As against this there may be certain exemptions on the final products alone to the extent that duties have been borne by the raw materials which went into the manufacture of the final products. Such exemptions though, having some trappings of procedure as is followed in respect of proforma credit or MODVAT are quite independent and will be available even to the assessees who may not be opting for MODVAT or proforma credit procedures. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id decision. Nowhere, even remotely, the Judgment states that an exemption under Rule 8 on a finished product to the extent of duty borne by raw-materials will be remission or adjustment of duty or that Rule 56A will ipso facto come into operation by such exemption notification. 7. In passing one may also mention that reference by the Assistant Collector in his order to set-off Notification No. 95/83, was really not necessary. The said notification grants exemption subject inter alia to the condition that the procedure set out in Rule 56A is followed. This does not mean, on the face of it, that set off envisaged under Notification No. 95/83 would automatically tantamount to creation of credits for the purpose of proforma credit scheme. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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