LAL WOOLLEN AND SILK MILLS (P) LTD. vs THE COLLECTOR OF CENTRAL EXCISE

The Supreme Court held that the assessee is liable to pay excise duty on dyed worsted woollen yarn despite having paid duty on grey yarn, as both are distinct goods under separate tariff items. The Court ruled that the assessee is not entitled to a set-off under Rule 56A of the Central Excise Rules since he failed to follow the required procedure for proforma credit as outlined in sub-rule (2). The appeal was dismissed, affirming the lower authorities' decisions regarding the duty demand.