JUDGMENT

R.C. Lahoti, J.-C.A. No. 6990/99 (Arising out of SLP (C) No. 12722/87)

Leave granted.

2. The appellants manufacture and sell asbestos cement products such as sheets (corrugated or plain), pressure pipes, couplings etc. These products require cement and asbestos fibre as raw materials. Both the items consumed as raw materials as also the finished products manufactured by the appellants are all excisable commodities under different tariff items. Asbestos fibre is covered by Tariff item 22-F. Cement is covered by Tariff item 23. 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., countervailing duty equivalent to excise duty was paid. The finished products of the appellants were not exempt from payment of excise duty leviable thereon nor were they chargeable to nil rate of duty. 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