Case Law Details
Brief Facts of the Case
The Appellant manufactures final product, namely, blanket out of woollen fibres. The blankets attract only Basic Excise Duty (for short “BED”) and do not attract either Additional Excise Duty (Goods of Special Importance) [for short “AED (GSI)”] or Additional Excise Duty (Textiles and Textile Articles) [for short “AED (T&TA)]. Polyester top is not used in the manufacture of the blanket. Therefore, the polyester top as such is not an input for the blanket.
With effect from 1st April, 1994, the Appellant became entitled to avail credit of duty paid on the inputs (tops etc.) used in or in relation to the manufacture of manmade yarn. With effect from the said date, the Appellants became entitled to avail credit of duty paid on the inputs used in or in relation to the manufacture of blankets falling under Chapter 63.
Vide Notification No. 24/94CE (NT) dated 20th May, 1994 issued under Rule 57A, AED(T&TA) paid on input can be utilised for payment of AED(T&TA) on the final product. Similarly, AED (GSI) paid on the input can be utilised for payment of AED (GSI) on the final product. Similar provision contained in Notification No. 5/94(NT) dated 1st March, 1994 also issued under Rule 57A.
Fourth proviso was added to Rule 57F with effect from 16th March, 1995. This provision has nonobstante clause. This proviso applied notwithstanding anything contained in Rule 57A or Notification issued thereunder.
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