1998 (7) TMI 225

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....assed by Commissioner (Appeals). The issue therein is whether the appellant is entitled to take and utilise credit of Additional Duties of Excise (Goods of Special Importance) Act, 1957 (GSI Act, 1957). The appellants purchased duty paid fabrics from the manufacturers and received them in their process house under Rule 56A, taking credit of the Additional Excise duty paid on such fabrics by its manufacturer as evidenced by the duty paid documents. The department's contention is that under Rule 56A, credit is available only to basic excise duty and not towards additional excise duty. The reason advocated is that the basic excise duty is leviable under Section 3 of the Central Excise Act, whereas, the additional excise duty is leviable under ....

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....2 (58) E.L.T. 9 (Guj.), wherein it is clearly held that an Additional Duty of Excise is only Excise duty coming under the provisions of Central Excises and Salt Act, 1944. The nature of additional excise duty considered by the Hon'ble Delhi High Court in the case of Parekh Prints supra was the same as is concerned in this case viz., Additional Duties of Excise (GSI) Act, 1957. Learned Advocate, therefore, submitted that the ratio of this decision is to be applied squarely to the facts of this case also. 6. Heard learned JDR, Shri Kannan, who reiterated the order-in-appeal and stressed that the additional duty of excise levied under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 cannot be construed to be a le....

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....perior authority viz., Assistant Collector to operate under Rule 56A. 10. It was argued at length by the learned Advocate for appellants, Shri Raghavan, that when such a procedure was allowed to be operated upon by the appellants, the Assistant Collector had already made his mind that the entire rule was applicable to the facts of the case as mentioned in their application. Since Rule 56A basically provides for avoidance of double taxation and by allowing credit of duties paid on the inputs received, therefore, also since the description of the fabric to be received under the said rule was already made known to the Assistant Collector, the eligibility of additional excise duty only payable thereon, could have been examined by that o....