TaxTMI 
TaxTMI 
2009 (7) TMI 1067
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....ant was maintaining a "set-off register" and claiming set-off of duty paid on naphthalene against demand of duty on beta-Naphthol, under the above notification. Being so, on 9-4-1992, they applied to the proper officer of Central Excise for permission to avail proforma credit under Rule 56A of the Central Excise Rules, 1944, which provision allowed credit of duty paid on naphthalene and its utilisation for payment of duty on beta-Naphthol. On 9-7-1992, the jurisdictional Assistant Collector of Central Excise granted this permission to the appellant on the condition that set-off under Notification 432/86-C.E., dated 6-10-1986 shall not be available to the appellant. On 11-7-1992, the appellant transferred the unutilised credit of Rs. 12,61,5....
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....DC, Chandrapur, was entitled to avail proforma credit with effect from 9-4-1992 in respect of inputs received between 9-4-1992 and 9-7-1992, the proforma credit of Rs. 9,99,095/- pertaining to the inputs received by the assessee M/s. Multi Organics (P) Ltd., A-1, MIDC, Chandrapur in their factory during the period from 9-4-1992 to 9-7-1992 is allowed at the proceedings initiated on the above said amount of Rs. 9,99,095/- are hereby dropped." 2. The present appeal is against the demand of Rs. 2,62,428/- which was availed as proforma credit by the appellant in respect of inputs received in their factory prior to 9-4-1992. Heard both sides on 27-7-2009. The learned counsel for the appellant submitted that, had the aforesaid amount of Rs. 2,....
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.....E. was an exemption notification which exempted specified excisable goods from so much of the duty of excise leviable thereon as was equivalent to the duty of excise leviable and already paid on specified inputs which were used in the manufacture of the final product. Naphthalene and beta-Naphthol were specified as input and final product respectively under the above notification. In their own interpretation of this notification, a Division Bench of this Tribunal, in the case of Abhideep Chemicals Pvt. Ltd. (supra), held that duty of excise was not payable on beta-Naphthol to the extent duty had already been paid on the amount of naphthalene used in the manufacture of the said final product. It appears, in that case, the Bench recognized o....
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....nder while interpreting the notification No. 225/86 : "The Notification lays down that specified final products are exempt from duty equivalent to the duty paid on the inputs used in or in relation to their manufacture. It does not require that the quantum of exemption equivalent to the duty paid on particular lot of inputs should be utilised only for payment of duty on the final products made from that lot of inputs. There is neither an express or implied condition in the notification to that effect. In other words, exemption from duty for a particular lot of final products is not to be limited to the duty paid on the inputs used in or in relation to their manufacture." 5. Following the ratio of these decisions, we hold that one-to-o....