SWADESHI POLYTEX LIMITED Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) This is an appeal under section 35L of the Central Excises and Salt Act, 1944 (hereinafter referred to as 'the Act') against the judgment and order dated 18th August, 1988 passed by the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi (hereinafter referred to as 'the tribunal').

(2.) The appellant was at all relevant times engaged in the manufacture, inter alia, of polyester fibre (man-made) falling under tariff item 18 of the erstwhile Central Excise Tariff. In the manufacture of the aforesaid, the appellant was using, amongst other inputs, ethylene glycol and DMT (Dimethyl Tetraphthalate) duty paid ethylene glycol falling under tariff item No.68 of the erstwhile Central Excise Tariff received by the appellant and used in the manufacture.

(3.) The notification No. 201/79 dated 4-6-79, mentioned hereinafter, exempted, according to the appellant, all excisable goods on which duty of excise was leviable and in the manufacture of which any goods failing under tariff item 68 had been used, from so much of the duty of excise as was equivalent to the duty of excise paid on the inputs. The appellants claimed setoff of duty on ethylene glycol used in the manufacture of polyester fibre under notification No. 201/79 dt. 23-6-1979. In response to the appellant's seeking setoff of the duty paid on ethylene glycol, they received a letter from the Assistant Collector of Central Excise, Ghaziabad, dated 6th August, 1980 by which the Asstt. Collector held that no pro forma credit was allowable in respect of ethylene glycol for the following: