1989 (12) TMI 204 - AT - Central Excise

Tribunal Upholds Collector's Decision on Proforma Credit for Wrapping Paper in Manufacturing

The Tribunal upheld the Collector (Appeals) decision granting proforma credit for duty paid on wrapping paper used in manufacturing other paper types, ... ‘Packing’ or ‘Wrapping’ paper used for packing other varieties of paper Issues:- Eligibility for proforma credit of duty paid on wrapping or packing paper used for other varieties of paper- Admissibility of additional ground not raised before the original authority- Jurisdiction of Collector (Appeals) to entertain additional ground- Application of relevant case laws in determining the admissibility of additional groundEligibility for Proforma Credit:The Collector (Appeals) found that respondents were entitled to the benefit of proforma credit of duty paid on wrapping or packing paper used for other paper varieties. The Executive Collector challenged this decision, arguing that wrapping paper cannot be considered a material used in manufacturing other paper types. However, the Tribunal referenced a previous case and held that proforma credit is admissible as wrapping paper, even if not fully consumed in the process, is used in an ancillary process to complete the manufactured product. Therefore, the Collector (Appeals) decision was upheld based on this interpretation.Admissibility of Additional Ground:The main challenge to the impugned order was whether the Collector should have adjudicated on the admissibility of Rule 56A, as this point was not raised by the respondents before the Assistant Collector. The Department relied on case laws to argue that new grounds cannot be entertained if not raised before the original authority. However, the Tribunal noted that no new facts needed investigation, and the claim under Rule 56A was supported by existing records. Therefore, the Tribunal found that the Collector (Appeals) had the authority to entertain the additional ground and make a decision.Jurisdiction of Collector (Appeals):The appellant-Collector cited case laws to support the contention that the Collector (Appeals) should not have entertained the additional ground. However, the Tribunal differentiated the present case from the cited judgments, emphasizing that no new facts required investigation. The Tribunal concluded that the Collector (Appeals) had the jurisdiction to adjudicate on the additional ground without violating any legal principles.Application of Relevant Case Laws:Various judgments were cited by both parties to support their arguments regarding the admissibility of additional grounds and jurisdiction of appellate authorities. The Tribunal analyzed each case law and found that the decisions did not apply directly to the present case due to differences in facts and legal principles. Ultimately, the Tribunal upheld the impugned order, dismissing the appeals based on the discussions and conclusions drawn from the case laws and legal interpretations presented during the proceedings.