Per V.K.Agarwal :

The issues involved in the appeal filed by M/s Shriram Rayons is regarding the availability of benefit of notification No. 225/86.

2 Shri. A.R. Madhav Rao, learned advocate submitted that the appellants manufacture Rayon yarn and availed of set off of duty paid on inputs while discharging the duty on their final product; that during the period from 17.5.88 to 14.4.89, Department did not allow them to utilise the credit as the Department insisted on 1:1 corelation and maintenance of set off Register. When they asked for refund of the accumulated credit in cash, the Asstt. Collector rejected the refund holding that there is no provision in the notification to allow carry forward of the credit and utilisation thereof for payment of duty on other goods; that the appellants could not produce the material which provides for refund in cash of credit available in balance. The Collector (Appeals) also confirmed the order passed by the Asstt. Collector. The learned Advocate, further, submitted that notification No. 225/86 exempts artificial staple fibre and tow and artificial filament yarn to the extent of duty already paid on the inputs specified in the table annexed to