Proforma credit under excise rules was available despite delayed licence grant where the department caused the delay.

Proforma credit under Rule 56A of the Central Excise Rules, 1944 could not be denied merely because the L-4 licence was issued a few days after receipt of the consignment, where the licence had been applied for in advance and the delay was attributable to the department. On those facts, the delay in grant of the licence was liable to be condoned for extending the Rule 56A benefit, and the petitioners were entitled to the credit.

---

---

Issues: Whether the petitioners were entitled to proforma credit under Rule 56A of the Central Excise Rules, 1944 despite receipt of the consignment before grant of the L-4 licence.

Analysis: The petitioners had applied for the licence before receipt of the consignment, and the delay in grant of the licence was attributable to the department. On these facts, the denial of proforma credit merely because the licence was granted a few days after receipt of the goods was not justified. The delay in grant of licence was therefore liable to be condoned for the purpose of extending the benefit of Rule 56A.

Conclusion: The petitioners were entitled to the benefit of Rule 56A and the revision application was allowed.

---