Order

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 onthe worsted woollen 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 ‘dyed yarn’? The two Notifications imposing duty on the said two goods are Notifications 235/76 and 236/76. It is not in dispute for the first time separate rate of duties were imposed on ‘grey yarn’ and ‘dyed yarn’ in 1966. Thereafter, through the aforesaid Notifications different tariff values and separate rates of duty were notified for the said two goods. In spite of this the assessee continued to pay the differential duty in view of the earlier practice without any objection from the Department. It is only on 24th August, 1977 notice was issued by the Department refusing such set off. Department case is that woollen yarn is notified in the schedule to Rule 56A of the Central Excise Rules. Thus under this Rule grant of proforma credit is permitted and not any set off subject to the claim by the assessee under sub-rule (2) of Rule 56A. As no such permissi