The benefit of proforma credit provided by Rules 56a (2) is distinct from the benefit and concession provided by the notification dated 3-12-1981.

( 1 ) THE petitioner , a Public Limited Company, is engaged in manufacturing and selling of aluminium wire rods, aluminium alloy ingots, aluminium circles of different thicknesses, and aluminium strips. These goods are manufactured from aluminium ingots purchased by the petitioner from primary producers, and aluminium scrap purchased from open market.

( 2 ) CENTRAL Excise dutys leviable on aluminium wire bars under Tariff Item No. 27 (a) (ii), while aluminium streips, plates, circles and sheets, and aluminium circles having thickness of above of 0. 56 mm. but not above 2. 00 mm. fall under Tariff Item No. 27 (b) of the First Schedule to the Central Excises and Salt Act, 1944 (hereinafter referred to as "the Act" ). `aluminium is mentioned under Tariff Item No. 27.

( 3 ) RULE 56a of the Central Excise Rules prescribes a special procedure for movement of duty paid materials or components parts for use in the manufacture of finished excisable goods. Sub - rule (1) of Rule 56a says :"notwithstanding anything contained in these Rules, the Central Government may, by notification in the Official Gazette, specify the excisable goods in respect of which the procedure laid down in sub - rule (2) shall apply. "

( 4 ) UNDER this sub - rule, "aluminium, other than n wire rods manufactured from ingots or billets" has been notified as one of the excisable goods in respect of which the procedure prescribed in sub - rule (2) of the said rule and apply.

( 5 ) SUB - rule (2) of Rule 56a says :"the Collector may, on application made in this behalf and subject to the conditions mentioned in sub - rule (3) and such other conditions as may from time to time be prescribed by the Central Government, permit a manufacturer of any excisable goods specified under sub - rule (1) to receive material or component parts or finished products (like Asbestos Cement) on which the duty of excise or the additional duty [under Section 3 of the Customs Tariff Act, 1975 (5 of 1975) (hereinafter referred to as `the countervailing duty] has been paid, in his factory for the manufacture of these goods or for the more convenient distribution of finished product and allow a credit of the duty already paid on such material or component parts or finished products, as the case may be. "

( 6 ) THE first proviso to this sub - rule says that no such credit of duty shall be allowed in respect of any material or component parts used in the manufacture of finished excisable goods if such finished excisable goods produced by the manufacturer are exempted from the whole of the duty of excise leviable thereon, or are chargeable to nil rate of duty. The proviso prescribes yet another condition namely, that the duty must have been paid for such material or component parts under the same item as the finished excisable goods, or remission or adjustment of duty paid for such material or component parts has been specifically sanctioned by the Central Government. It is not necessary to notice the other provisions of the rule.

( 7 ) THE petitioner was permitted by the Assistant Collector of Central Excise, Hyderabad-III Division, through his letters dated 20-4-1981 and 24-7-1981 to avail of the concession provided by sub - rule (2) of Rule 56a, to receive duty paid aluminium ingots, falling under Tariff Item 27 (a) (i), subject to the observance of the conditions prescribed in the said rule, as amended from time to time, and the insgtructions issued in that behalf by the Collector of Central Excise, Hyderabad, from time to time, for the manufacture of finished excisable goods. Accordingly, the petitioner has been availing of the benefit of Rule 56a (2 ).

( 8 ) UNDER Rule 8 (1) of the Central Excise Rules, the Government of India issued Notification No. 193/81-C. E. dated 3-12-1981, exempting aluminium of the description specified in Column 3 of the Table annexed hereto, and falling under the sub - item specified in the corresponding entry of Column 2 of the said Table , from so