TMI Blog1989 (2) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration the closing balance of the stock of raw materials and the closing balance of the steel ingots manufactured from the same on the date of the check. The appellants were restrained from utilising this excess amount as this could not be related to the stock position of the input and the output manufactured out of the inputs. The Appellate Collector has observed that since the duty chargeable on the input and the output was the same, the excess credit should not have been there. He has held that as a part of the claim of credit of 56A procedure, the intention was to give the relief in regard to double taxation to the assessees and it was not intended to give any undue benefit or financial gain. 2. The learned Advocate for the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n under Rule 56A under which the assessee could be denied the benefit of utilisation of an outstanding credit. 4. We observe that Rule 56A is in the nature of a simplified self-contained procedure for giving relief to the extent of duty paid certain inputs used in the manufacture of specified end products. No batch to batch correlation of the inputs used and the end products cleared on payment of duty is prescribed. All that is prescribed is that the proforma credit taken should be utilised for payment of duty for clearances of specified end product for which the inputs are permitted to be utilised. The relevant operative part of Rule 56A(2) is set out as under - ***** The Collector may, on application made in this behalf and subject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng duty has been paid in respect of such material or component parts, as fall under Item No. 68 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944). Explanation. - Credit of the duty allowed in respect of any material or component parts shall not be denied or varied on the ground that part of such material or component parts is contained in any waste, refuse or by-product arising during the process of manufacture of the finished excisable goods irrespective of the fact that such waste, refuse or by-product is exempt from the whole of the duty of excise leviable thereon or is chargeable to nil rate of duty or is not notified under sub-rule (1). Provided (also) that if the duty paid on such material or component p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the rule. Inasmuch as no provision has been brought to our notice, we hold that the lower authority was not right in denying the benefit of utilisation of the credit found to be outstanding as held by the lower authority. We observe that all that is required under the rule is that the proforma credit taken for the materials should be utilised for the payment of duty on the specified finished goods in the manufacture of which the imports are used. The Hon ble High Court of Madras in the case of E.I.D. Parry (India) Ltd., Madras v. Government of India [1979 E.L.T. (J 253)] have ruled as under in this regard - What is contended on behalf of the petitioner, there is no obligation that the imported Rock phosphates must be utilised in one an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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