TMI Blog2005 (2) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... which themselves were also exempted from duty - Held that:- appellant had in fact paid the duty on the procured components for the junior tractors and that the credit was not reversed ultimately when the junior tractors were cleared. That the appellant had violated the provisions of Rule 57C and 57F of the Central Excise Rules is also not questioned - duty demanded by the respondent as well as pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r junior tractors were not exempted from excise duty. The appellant had accordingly paid the duty and availed of the Modvat credit and reversed the entry at the time of clearance. According to the appellant this particular method was continued to be followed despite the exemption granted to the parts of 3/4/86 as it was not possible for the appellant to keep track of the consumption of each compon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counts and storage facilities. It is not in dispute that subsequent to this rejection the appellant has done just that and has not followed the procedure as followed by it earlier. 3. It is also not in dispute that the appellant had in fact paid the duty on the procured components for the junior tractors and that the credit was not reversed ultimately when the junior tractors were cleared. That ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to pay the penalty as prescribed under the rules for such violation. 6. The Tribunal had held that the duty demanded by the respondent as well as penalty for availing credit were valid. While upholding the decision of the Tribunal, for the reasons stated by us earlier, we set aside the decision of the Tribunal insofar as it relates to demand of duty. 7. The appeals are, accordingly, di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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