TMI Blog1999 (5) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... 86, dated 6-10-1986 exempted Dye-intermediates falling under Chapter 29 of the Schedule to the Central Excise Tariff Act from so much of the duty of excise as is equivalent to the excise duty already paid on Naphthalene falling under sub-heading 2707.40 of the Tariff. As no procedure was prescribed in the Notification for availing the exemption, they followed the procedure prescribed in Rule 56A of the Central Excise Rules for availing of proforma credit. The Superintendent Central Excise, however, under order dated 3-4-1987 ordered for disallowing the set off under Notification No. 432/86 for not following the procedure prescribed under Trade Notice No. 126/81 dated 22-5-1981. This order was set aside by the Collector (Appeals) under order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by adjusting the entire duty amount from credit amount accumulated by them instead of restricting the set off to the duty paid on inputs used in the manufacture of goods. The Collector Central Excise, under the impugned order dated 23-2-1994, confirmed demand of Rs. 5,34/463.07 on final goods removed; imposed a penalty of Rs. 50,000/- on the appellants and released the seized goods and trucks unconditionally. The Collector also allowed the set off under Notification No. 432/86 on the inputs Naphthalene issued for manufacture of the goods on which duty was demanded. 3. The learned General Manager, further, submitted that no condition was specified in the Notification No. 432/86 for availing of the exemption provided by it; that the only re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 32/86 by M/s. Atul Products, on the basis of verification report given by Range Superintendent. He also mentioned that said para 6.1 provided that set off was to be taken on the quantity of duty paid excisable goods that had been issued for the manufacture of the finished excisable goods and was not to be confined to the duty on the quantity actually contained in the finished excisable goods. He finally placed reliance on the decision in Indian Petro Chemicals Ltd. v. C.C.E., 1992 (61) E.L.T. 138 (T) in which it was held that Notification No. 225/86 did not stipulate maintaining set off register and in absence of any statutory or E/4414/94-C mandatory condition of maintaining a set off register, the Department cannot insist upon it and den ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the entire amount accumulated by the appellants in set off register was not the amount of duty paid in the manufacture of Dye-intermediate. It is apparent from para 4 of the enclosure II to Board's letter that set off is to be taken on the quantity of duty paid excisable goods that have been issued for the manufacture of the finished excisable goods. There is neither any allegation in the show cause notice nor any finding in the impugned order that the amount involved was not out of the quantity of Naphthalene issued for the manufacture of the finished excisable goods. We also observe that the said para 4 further mentioned that set off is not to be confined to the duty on the quantity actually contained in the finished excisable goods. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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