1994 (12) TMI 217

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.... 2.1 The Appellants, a manufacturer of railway carriage fan falling under sub-heading No. 8414.20 of Central Excise Tariff Act, 1985 received some goods classifiable under different sub-headings of the said Act for the purpose of using the said goods as inputs in the manufacture of their final product, as aforesaid. Some of the inputs are received from manufacturers themselves availing of the concessional rate of duty in terms of Notification No. 175/86, dated 1-3-1986. Consequently, the Appellants availed themselves of higher notional credit in respect of special excise duties also paid on such inputs on the basis of their interpretation that such availment of higher notional credit of special excise duty was admissible to them in terms o....

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.... would include the benefit of higher notional credit of special excise duty as well. For this submission, the Appellants have again relied on the earlier order of Collector (Appeals) mentioned supra. In order to understand the reasoning of the Collector (Appeals), I reproduce below the relevant portion of his finding from the said Order-in-Appeal :- "I have considered the matter. I find that Rule 57B of Central Excise Rules, 1944 provides for grant of higher notional credit in respect of specified duty paid on inputs obtained from Small Scale Units. Specified duty includes special excise duty payable under Finance Act as provided in Notification No. 177/86-CE dated 1-3-1986 (as amended). I also find that Board in their classification in F.....

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....sidered to be giving a benefit of notional higher credit in terms of para-5 thereof only on the basic excise duty inasmuch as the said Notification has been issued in terms of Rule 8(1) of the Central Excise Rules, 1944 wherein duty has been defined as duty under Section 3 of the Central Excises and Salt Act, 1944. The Notification does not speak of giving any exemption in terms of Finance Act, 1988 which imposes or levies the special excise duty. He, therefore, submits that there is no authority whatsoever for giving benefit of any notional higher credit in respect of special excise duty because Rule 57B of the Central Excise Rules (a part of the Modvat Rules) allows notional higher credit only if the Notification gives a benefit of such a....