1988 (12) TMI 251

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..... . Kalyanam, Member (J), (Oral)]. - This appeal is directed against the order of the Collector of Central Excise (Appeals), Madras, dated 29-4-1988 confirming the order of the Assistant Collector of Central Excise, Nellore, dated 8-10-1987 directing the appellant to pay a sum of Rs. 69,120/- under Rule 57-I of the Central Excise Rules, 1944 hereinafter referred to as the 'Rules'. 2. The appellan .....

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..... paid the differential duty at the instance of the Department collected the same from the appellant herein and the appellants consequently took credit of the differential amount of Rs. 69,120/-. Proceedings were instituted against the appellants by issue of a show cause notice dated 30-6-1987 directing the appellants to show cause as to why the credit in respect of Rs. 69,120/- referred to supra sh .....

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..... put admittedly being an input entitled to MODVAT credit under the scheme and admittedly having suffered duty at the rate of 20%, the appellants are right in having taken credit for the entire duty suffered by the input in terms of Rule 57-A and reversal of the same by invoking Rule 57-E in the circumstances of the case is not legally correct. 4. Shri K.K. Bhatia, the learned S.D.R., submitted tha .....

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..... puts, the credit allowed shall be varied accordingly by adjustment in the credit-account maintained under sub-rule (3) of Rule 57-G or in the accounts maintained under Rule 9 or sub-rule (1) of Rule 173-G or, if such adjustment is not possible for any reason, by cash recovery from the manufacturer availing of credit under Rule 57-A." On consideration of the above rule, we are of the view that the .....

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..... not sustainable in law. In this view of the matter, we set aside the impugned order appealed against and allow the appeal, and remit the issue to the original authority for verification of the fact as to whether the input in question has suffered the correct duty as per law and whether the same amount has also been taken credit by the appellants herein and consider the case by application of Rule .....

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