1987 (11) TMI 136

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..... a Credit relatable to zinc in its finished product which credit was found to have been wrongly given and sought to be withdrawn, thereby asking the assessee to deposit the sum of Rs. 9,06,352 and Rs. 42,257. The plea further was that with reference to pages 30 & 31 of the paper book which is the copy of Central Excise Duty Account as appearing in the general ledger. Referring to this plea raised was that amount of Excise duty paid is debited to this account and all Proforma Credit received from the Excise Authorities are credited to this account. Referring to this account in the general ledger, the plea of the assessee was that the Performa credit system of the excise authorities is with a view to give credit in respect of Excise Duties whi .....

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..... ibunal in not allowing the claim of the assessee which is based on wrong facts, should therefore, be modified. 2. The learned Sr. Departmental Representative submitted that the Rules and procedures of the Excise Rules, regarding the proforma credit their adjustment against the Excise Duty liability have been brought out correctly by the assessee. His plea, however was that if these rules have been considered wrongly then only the result would be modification and not otherwise. 3. We have given careful consideration to the arguments that were advanced by the parties. The issue involved is in regard to the modification of the systems of set of procedure to the proforma credit system in respect of the Zinc. Rules 56A of the Central Excise Ru .....

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..... t credit of the proforma credit of duty paid on parts used in the manufacture of finished excisable goods. In accordance with these rules the notification were issued in 1980 for changeover from set off procedure to proforma credit System. While adopting the changeover, the excise authorities committed an error of allowing the Proforma Credit Zinc. The rule provided that before the notification, credit for duty must have been allowed then only the same could be continued after the notification. When this mistake came to light after about two years from the earlier notification and advice to the assessee, they sought to rectify the mistake and raised the demand on the assessee. Their notice of March, 1982 is clearly indicative that credit wa .....

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