1987 (7) TMI 269

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....o be used in the manufacture of products falling under Item No. 14 of the Central Excise Tariff (hereafter C.E.T.) 2.  The department's case is that M/s. Garware Paints Ltd. used these raw materials not directly in the manufacture of products falling under Item No. 14 of the C.E.T., but in the manufacture of Alkyd Rosins falling under Item No. 15-A of the C.E.T. which were exempt from payment of Central Excise duty vide Notification No. 122/71, dated 1-6-1971. It is admitted that Alkyd Rosins so manufactured were further consumed in the production of products falling under Item No. 14 of the C.E.T. It is submitted on behalf of the department that since Alkyd Rosins were exempt from payment of Central Excise duty, therefore, raw mate....

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....  Responding. Shri G.R. Divekar Consultant has reiterated the view taken by the Collector (Appeals) and strongly relied on both the  Trade Notice and the Bombay High Court judgment cited supra. Apart from this, he has stated that the demand of duty is time barred. It is also urged that duty is being demanded even for period during which appellants had in fact not availed of the proforma credit. 8.  The facts of the case and the submissions made by both sides have been carefully considered. It is seen that in the decision that the Collector (Appeals) has taken, he relied on the Trade Notice issued by the Bombay Central Excise Collectorate, a copy of which has been filed by the respondent with his Cross Objections. The relev....