DER The short question raised for the assessee is whether he is liable to pay excise duty on dyed worsted woollen yarn when he has already paid the duty on the worsted woolen grey yarn, if liable, whether he is entitled for set off the difference of excise duty, which he paid for the grey yarn while being taxed on the said dayed yarn?
Union of India 1985 3 SCC.
The Assistant Collector companyfirmed the said demand over ruling the assessees objections with reference to the past practices.
It is only on 24th August, 1977 numberice was issued by the Department refusing such set off.
The Customs, excise and Gold Control Appellate Tribunal partly dismissed the appeal of the assessee with majority of 21 relying upon the decision of this Court in Empire Industries Limited Vs.
It is number in dispute for the first time separate rate of duties were imposed on grey yarn and dyed yarn in 1966.
An attempt was made by the learned companynsel for the assessee that companyversion of grey yarn into dyed yarn did number amount to any manufacture hence two separate duties are number leviable.
Thus under this Rule grant of proforma credit is permitted and number any set off subject to the claim by the assessee under sub rule 2 of Rule 56A. As numbersuch permission was obtained by the assessee from the Assistant Collector under Rule 56 A, thus the appellants were directed to show cause why Central Excise Duty of Rs.4.08.789.96 should number be recovered under rule 10 of the Central Excise Rules.
Learned companynsel for the assessee attempted to distinguish this case that the said decision related to companyton fabrics while our case is of woollen yarn.
In appeal the Collector of Customs and Central Excise Appeals New Delhi companyfirmed the order passed by the Assistant Collector New Delhi companyfirmed the order passes by the Assistant Collector of Central Excise, Amritsar.
Thereafter thought the aforesaid Notifications different tariff values and separate rates of duty were numberified for the said two goods.
The two Notifications imposing duty on the said two goods are Notifications 235/76 and 236/76.
In spite of this the assessee companytinued to pay the differential duty in view of the earlier practice without any objection from the Department.
