TMI Blog1995 (1) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in the show cause notice dated 1-1-1986 was concerned. The said demand was consequent to the finding by the Asstt. Collector that the appellants had misutilised proforma credit by clearing Airconditioners by paying duty by excess utilisation of proforma credit earned by them on component parts of Refrigerators. It was observed by the Asstt. Collector that credit could be utilised under Rule 56A for paying duty only on such finished goods for the manufacture of which the materials/component parts on which credit had been earned had been permitted to be brought to the factory and not on any other finished goods. Apart from upholding the Asstt. Collector s order to the above extent but setting it aside insofar as the demand corresponding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de their letter dated 21-1-1994 after this Bench had passed an interim order dated 17-1-1994. In this letter they furnished details of duty payment made by them on their two products from their RG-23 account and Personal Ledger Account. It has been submitted that by the alleged excess use of the credit amount earned on their component parts of refrigerators for payment of duty on airconditioners, they had to pay duty on their refrigerators by correspondingly paying more duty from their Personal Ledger Account. If they had not utilised the impugned credit amount for payment of duty on airconditioners they would have been able to utilise the same for payment of duty on the refrigerators instead of having to pay from Personal Ledger Account. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ures showing the credit amounts and the amount paid as duty on refrigerators from their P.L.A. was submitted by them to the Assistant Collector of Central Excise, MOD V, New Delhi for verification of their contentions. The Assistant Collector submitted his report after such verification. It was admitted by the Asstt. Collector that they would have been able to meet the duty liability on refrigerators cleared during the period from 1/86 to 12/87 from the credit of duty earned on their component parts if they had not utilised the same for payment of duty on clearances of airconditioners during the period from 1-6-1985 to 26-12-1985. In that event they would not have been forced to pay duty on clearances of refrigerators from P.L.A. 4. With ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmissions. Though, on merits the findings of the Collector (Appeals) that credit of duty earned on the materials and component parts taken in the RG 23 account can be utilised for payment of duty payable on the finished products in the manufacture of which they have been permitted to be brought into the factory and not for any other product made by them is legally correct and the parts in question which are for Refrigerators were used for Refrigerators and not for airconditioners, the adjustment of credit sought by the appellants is permissible. The total amount of duty paid by them on their two products is more than the credit corresponding to the duty paid on their component parts and was made up by payment from P.L.A. Obviously the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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