The aggrieved appellants have filed this special leave petition.
The appellants challenged both the orders before the High Court of Andhra Pradesh by filing writ petition under Article 226 of the Constitution which also has been dismissed.
The decision of the High Court under appeal is reported as 1987 ELT 28 A.P. The High Court has for itself analysed and examined the provisions of Rule 56A. The High Court has also cited in its support a division bench decision of the High Court of Gujarat in Digvijay Cement Company Limited Vs.
The finished products of the appellants were number exempt from payment of excise duty leviable thereon number were they chargeable to nil rate of duty.
Union of India 1986 25 E.L.T. 879.
The finished products manufactured by the appellants are excisable under Tariff item 23 C. In respect of cement and asbestos fibre obtained from outside excise duties were duly paid under the relevant tariff items 23 and 22F. In respect of imported asbestos additional duty, i.e., companyntervailing duty equivalent to excise duty was paid.
The Assistant Collector refused to grant such permission.
The appellants claimed the benefit of proforma credit procedure by seeking credit for the payment of duty paid on the inputs as against the duty payable on the finished products and sought for permission of the Assistant Collector of Central Excise, Hyderabad under Rule 56A of the Central Excise Rules, 1944 hereinafter referred to as the Rules framed under the provisions of the Central Excise and Salt Act, 1944.
Rule 56A was introduced on 8.12.1962.
C. Lahoti, J. A. No/99 Arising out of S.L.P. C No.12722/87 Leave granted.
The appellants manufacture and sell asbestos cement products such as sheets companyrugated or plain , pressure pipes, companyplings etc.
Both the items companysumed as raw materials as also the finished products manufactured by the appellants are all excisable companymodities under different tariff items.
An appeal preferred before the Collector of Central Excise, Hyderabad failed.
Asbestos fibre is companyered by Tariff item 22 Cement is companyered by Tariff item 23.
These products require cement and asbestos fibre as raw materials.
