TMI Blog2009 (7) TMI 842X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture PVC film/sheets which is then used as an input in the manufacture of artificial leather cloth - The assessee in the instant case had claimed credit towards payment of duty on final product PVC sheet/film as an input for manufacture of artificial leather cloth. Exemption under Notification No. 217/86-C.E, is only applicable in respect of the credit taken on inputs falling under Heading No. 39.04 when utilized for payment of duty on the goods falling under Heading 59.03. This restriction is not applicable in the case where duty paid on the goods falling under Heading 39.20 is taken and utilized for payment of duty on the goods falling under heading 59.03 - Hence the order of the tribunal directing Assistant Commissioner to communi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of duty on PVC film/sheet. The PVC film/sheet is cleared by the Petitioners on payment of appropriate duty of excise. The credit of duty paid on PVC film is taken on the credit as utilized for payment of duty on leather cloth. The Petitioners chose to pay duty on PVC film though the same was exempted by Notification No. 217/86-C.E., dated 2-4-2006. 3. A show cause notice was issued to the Petitioners demanding duty for the period from July to December, 1992 on the ground that the Petitioners ought to have availed exemption under Notification No. 217/86-C.E. for PVC film/sheet. Show cause notice demanded the duty paid by the Petitioners for PVC film/sheets and taken as credit and utilized for payment of duty on leather cloth. The s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion No. 217/86-C.E. Thus the duty paid on PVC film and utilized for payment of duty on leather cloth was ordered to be recovered by Respondent No. 3. In an appeal before CEGAT Respondent No. 2 passed an order holding that the Petitioners have option to pay duty on PVC film instead of availing exemption in Notification No. 217/86-C.E. CEGAT further proceeded to hold that restriction contained in third proviso to Para 2 of Notification No. 217/86-C.E.(M.P.) as amended the duty under Rule 57(a) is applicable to the Petitioners case and accordingly directed the Assistant Commissioner now Deputy Commissioner to recover the duty from the Petitioners. 6. At the hearing of this petition, on behalf of the Petitioners their learned counsel submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efs has been succinctly set out by the Supreme Court in Hindustan Polymers Co. ltd. v. C.C.E., 1999 (106) E.L.T. 12 (S.C.). We may gainfully reproduce para 6 : 6. While we appreciate the Tribunal s desire to do complete justice and mould the relief in that direction, we think that, in the circumstances, the Tribunal should not, in this case, have passed an order which proceeded upon a basis that is altogether different from that of the demand made upon the appellants. That is not moulding relief. The demand that was made upon the appellants was under Tariff Item 68 and it proceeded upon the basis that there was a process of manufacture of coloured polystyrene from C uncoloured polystyrene. Having come to a conclusion against the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n input in the manufacture of artificial leather cloth. The assessee in the instant case had claimed credit towards payment of duty on final product PVC sheet/film as an input for manufacture of artificial leather cloth. In the two other methods coating and impregration resins are directly used in manufacture of artificial leather cloth. The tribunal lost sight of the said fact. 9. In so far as the notification is concerned, it is only applicable in respect of the credit taken on inputs falling under Heading No. 39.04 when utilized for payment of duty on the goods falling under Heading 59.03. This restriction is not applicable in the case where duty paid on the goods falling under Heading 39.20 is taken and utilized for payment of duty on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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