2001 (2) TMI 777

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....West Bengal. According to the appellants in terms of Government of India Notification No. 178/77-C.E., dated 18-6-1977 as amended by Notification No. 295/77-C.E., dated 28-9-1977 the Appellant was entitled to set off of input duty (under T.I. 68) paid on its input raw materials. Being unable to avail the set off concurrently, the Appellant lodged a refund claim in respect of the set off of input duty not availed during the period 18-6-1977 to 31-12-1977. The refund claim was first rejected by the Assistant Collector on the ground that the provisions of the Trade Notice No. 67/Goods NES- /CE/78, dated 1-4-1978 were not followed by the Appellants. On appeal the order was rejected by the then Appellate Collector who remanded the same for de no....

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....of CET. Therefore prior furnishing of the statement showing quantities of input used in the manufacture of every unit of the finished goods is very essential for availing of the notification. 2. The submissions made by Shri Srinivasan and ld. SDR have been carefully considered. Notification No. 178/77 reads as follows,- "In exercise of the power conferred by sub-rule (1) of rule 8 of the Central Excise Rules 1944, the Central Government hereby exempts all excisable goods (hereinafter referred to as the "said goods") on which the duty of excise is leviable and in the manufacture of which any goods falling under Item No. 68 of the First Schedule to the Central Excises and Salt Act 1944 (1 of 1944) (hereinafter referred to as the in....

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.... on the item 68 input there necessarily has to be a co-relation on the quantum of such input going in to the manufacture of the finished goods and quantum of duty paid on the input for determining the quantum of set off of duty payable on the finished goods. This co-relation is a necessary condition as otherwise the principle of set off of input duty as envisaged in the notification cannot be implemented effectively. Therefore to determine the quantum of refund, furnishing of the particulars showing the quantity of input used in the manufacture of every unit of the finished goods, is necessary as otherwise the correct effective quantum of input duty set off will be difficult to determine for the clearance of the goods post facto while deali....