1996 (5) TMI 94 - SC - Central Excise

Supreme Court affirms dismissal of Writ Petition seeking excise duty refund under notification rule.

The Supreme Court upheld the Gujarat High Court's decision to dismiss the appellant's Writ Petition seeking a refund of excise duty under a notification ... Exemption - Modvat credit Issues involved: Appeal against dismissal of Writ Petition for refund of excise duty based on a notification u/r 57K of Central Excise Rules, 1944.The Supreme Court dismissed the appeal against the dismissal of the appellant's Writ Petition in the Gujarat High Court regarding a claim for refund of excise duty. The appellant's claim was based on a notification issued by the Central Government u/r 57K of the Central Excise Rules, 1944, providing a concession to certain manufacturers of vegetable products. The High Court found no merit in the appeal, leading to the filing of this appeal by special leave.Details of the Judgment:1. The High Court's finding was that the Excise Officer was not informed of the fulfillment of relevant conditions for availing the credit by the appellant, leading to the refusal of the credit. This crucial point alone was sufficient to dismiss the appellant's claim.2. The notification specified conditions for availing the benefit, with the first condition stating that the credit could only be taken on the date of hydrogenation of the oil for manufacturing the final products. The appellant failed to comply with this condition, as the credit was not taken on the specified date of hydrogenation.3. The non-compliance with the essential condition of taking credit only on the date of oil hydrogenation was deemed enough to justify the dismissal of the appellant's claim by the High Court.4. Consequently, the Supreme Court upheld the High Court's decision to dismiss the Writ Petition, as the appellant did not fulfill the prescribed conditions for availing the concessional benefit under the notification.5. The appeal was dismissed with no costs awarded in the matter.