TaxTMI 
TaxTMI 
1987 (10) TMI 57
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..... 27. 3. Rule 56A of the Central Excise Rules prescribes a special procedure for movement of duty paid materials or component parts for use in the manufacture of finished excisable goods. Sub-rule (1) of Rule 56A says : "Notwithstanding anything contained in these Rules, the Central Government may, by notification in the Official Gazette, specify the excisable goods in respect of which the procedure laid down in sub-rule (2) shall apply." 4. Under this sub-rule, "aluminum, other than wire rods manufactured from ingots or billets" has been notified as one of the excisable goods in respect of which the procedure prescribed in sub-rule (2) of the said rule shall apply. 5. Sub-rule (2) of Rule 56A says : "The Collector may, on application made in this behalf and subject to the conditions mentioned in sub-rule (3) and such other conditions as may from time to time be prescribed by the Central Government, permit a manufacturer of any excisable goods specified under sub-rule (1) to receive material or component parts or finished products (like Asbestos Cement) on which the duty of excise or the additional duty [under Section 3 of the Customs Tariff Act, 1975 (5 of 1975) (he....
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.... (a)(i) Aluminium in any crude form including ingots, bars, blocks, slabs, billets, shots and pellets. Twenty per cent ad valorem; (a)(ii) Wire bars. Twenty per cent ad valorem; XX XX XX 6. (aa) Waste and scrap Twenty per cent ad valorem; 7. (b) Manufactures, namely, plates, sheets, circles (other than circles having thickness of and above 0.56 mm. But not above 2.00 mm.), strips, shapes and section in any form or size, not otherwise specified. Twenty per cent ad valorem; 9. The proviso appended to the notification, however, says : "..... in respect of goods specified against Serial Nos. 2, 5, 7, 8, 9, 10, 11 and 12 of the said Table and manufactured from aluminum of any description mentioned in Column (3) of the said Table on which the duty of excise or the additional duty leviable under Section 3 of the Customs Tariff Act, 1975 (51 of 1975) has been paid, the exemption contained in this notification in respect of such goods shall apply only if an officer not below the rank of Assistant Collector of Central Excise is satisfied that the said duty or the additional duty, as th....
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....uminum products mentioned at Serial Nos. 5, 7 and 8 of the classification list were permitted to be cleared on payment of lower rate of duty under the Notification No. 193/81, dated 3-12-1981, provided these products are manufactured out of material on which duty has been paid at the rate prescribed in this notification. The proforma credit availed by you for the clearance of the said products is not correct, as the raw material used would then become non-duty paid. Consequently, the products would not be eligible for the lower rate of duty under this notification. Therefore, you are directed not to avail of proforma credit of the duty paid on the raw material "Aluminum Ingots". The proforma credit already availed with effect from 11-1-1982 should be re-credited. Yours faithfully, sd/- ASSISTANT COLLECTOR, Central Excise, Hyderabad II Dvn.". 12. A reading of this letter shows that the only reason for denying the benefit of Rule 56A(2) to the petitioner is that it has availed of the benefit of the notification dated 3-12-1981. The 1st respondent is of the opinion, as stated in the said letter, that if the petitioner is allowed to avail of the benefit of proforma cr....
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.... not apply if credit of duty paid on the ingots or billets used in their manufacture, has been taken under Rule 56A of the said Rules......". 15. Similarly, another Notification, i.e., No. 67/82-C.E., dated 28-2-1982 as amended on 1-3-1983 and 13-5-1983, also contains a proviso that "nothing contained in this notification shall apply to a manufacturer who avails of the special procedure prescribed under Rule 56A of the Central Excise Rules, l944 , in respect of the duty paid on the base paper or base paper board". A similar provision is contained in yet another notification, bearing No. 208/83-C.E., dated 1-8-1983. 16. In the circumstances, there is ample force in the contention of the learned Counsel that the petitioner, by availing of the benefit of the notification dated 3-12-1981, is not deprived of the benefit of proforma credit under Rule 56A. Of course, it goes without saying that for availing of either benefit, he must satisfy the relevant requirements. For availing of the benefit of the notification the petitioner must satisfy the requirements of the said notification, and similarly for availing of the benefit of proforma credit under Rule 56A, it must comply with th....