1983 (6) TMI 104

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....R, for the Respondent. Appeal under Section 35B of the Central Excises and Salt Act, 1944 praying that in the circumstances stated therein, the Tribunal will be pleased to set aside the order of the Collector of Central Excise (Appeals), Madras and allow the appellants to retain the balance in RG 23 Part-II account to be adjusted against excise duty pending decision of the Supreme Court or on f....

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.... also refused refund of the amount in cash and observed that "the licence is no longer there and so there is no provision to retain such balances or to refund it". When the matter was raised with the Collector of Central Excise (Appeals), Madras, he regretted his inability to interfere with the Assistant Collector's order noting that in the absence of a specific provision under the Rule in this be....

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....ment holds otherwise, the issue of dutiability is also before the Supreme Court; if that Court decides in favour of the appellants, there could be no credit in RG 23 account in respect of the additional duty of customs (countervailing duty) paid on the import of rock phosphate which is used eventually in the manufacture of NPK 14-35-14; if the decision is for the Department the appellants will be ....

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....a specific order. When the final product is not dutiable, the question of collecting any amount from an assessee does not arise. Hence, whether an amount remains in credit in a paper account or not ceases to be relevant. It is perhaps in this context that the Department has been loosely stating that when finished goods cease to be dutiable, the credit in RG 23 account lapses. In a situation like t....