2000 (10) TMI 114

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.... case. 2.The three appellants are manufacturers of Sugar, Molasses, Ethyl Alcohol and Denatured Spirit. Ethyl Alcohol is exempt from payment of duty. The three assessees had taken credit of the duty paid on Molasses. The credit proportionate to be inputs used in the manufacture of product namely Ethyl Alcohol was sought to be used by the assessees for payment of duty on sugar. To do this they took recourse to the provisions of Rule 57F(12) of the Central Excise Rules, 1944 which read as under : "Credit of specified duty allowed in respect of any inputs may be utilised by the manufacturer of the final products towards payment of duty of excise on any of the following, namely :- (a)        On any of the ....

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....self cannot override or supercede the position brought out in the main rule itself especially when the proviso does not contain words requiring the provision of the main Rule to be disregarded. Under these circumstances, a clear picture emerges that the requirements of the main Rule that the credit of specified duty allowed in respect of any inputs is to be utilised on any of the final products in the manufacture of which such inputs are intended to be used in accordance with the declaration filed under Rule 57G, continues to hold full sway. In the facts of the present matter, it is nobody's case that sugar was the final product in the manufacture of which Molasses were the inputs intended to be used in accordance with assessee's declara....