TaxTMI 
TaxTMI 
1990 (9) TMI 82
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.... 68 to the First Schedule to the Central Excises and Salt Act (hereinafter referred to as the 'Act'). The manufacture of synthetic organic dyestuff is liable to payment of excise duty under Tariff Item No. 14D of the First Schedule. By Notification No. 103/61, the Central Government exempted the dyes derived from coal tar and manufactured wholly or partly out of the intermediates, falling under Item No. 14D of the First Schedule from so much of the duty of excise leviable thereon as is equivalent to the amount of the countervailing customs duty paid on such imported intermediates. The petitioners were thus entitled to avail of the exemption granted by notification dated April 20,1961. The Central Government in exercise of powers conferre....
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....judication order on February 26, 1982 holding that the decision communicated to the Company on December 7, 1961 is correct and the Company should honour the demand made by payment of amount of Rs. 3,62,253.75. The order passed by the Assistant Collector is under challenge in this petition filed under Article 226 of the Constitution of India. 3. Shri Poddar, learned counsel appearing on behalf of the petitioners, submitted that the Assistant Collector was in error in holding that not only the procedure prescribed under Rule 56A but the substantial provisions of Rule 56A are applicable while ascertaining whether the Company is entitled to avail of the exemption granted under Notification No. 103/61 dated April 20, 1961. The Assistant Colle....
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....overnment, in exercise of powers conferred by Section 37 of the Act amended the Central Excise Rules, 1944 on March 3, 1979 and the relevant amendment to Rule 56A reads as under : "Provided further that no credit of countervailing duty shall be allowed in respect of any material or component parts used in the manufacture of finished excisable goods, if countervailing duty has been paid in respect of such material, or component parts, as falling under Item No. 68 of the First Schedule to the Central Excises and Salt Act, 1944." The Assistant Collector passed the impugned order on the basis that after amendment of Rule 56A, the Company is not entitled to the advantage of exemption which was granted provisionally for the period commencin....
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....intermediates when such imported intermediates are used while manufacturing the final product liable to payment of excise duty under Tariff Item No. 14D of the First Schedule. The amended Rule 56A on which the Assistant Collector relied deprives the manufacturer of credit of countervailing duty when such countervailing duty falls under Item No. 68 of the First Schedule. It is not in dispute that the intermediates imported by the Company were liable to payment of duty under Tariff Item No. 68 and also countervailing duty. It is not in dispute that the intermediates imported were used as components for manufacture of dyestuff and which was liable for duty under Tariff Item No. 14D of the First Schedule. The result of importing the amended pro....