1990 (5) TMI 137

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....The short question that arises for consideration in the present appeal is whether in a situation where the supplier of raw material is called upon by the Department to pay more duty and whether the additional duty paid by the supplier on the inputs which in turn were purchased by the appellant, the appellant would be entitled to take credit or vary the credit to his advantage. In other words, if the inputs had suffered a certain sum originally at the hands of the supplier and if the supplier is called upon to make a payment of differential duty later, whether the receiver of the inputs would be entitled to take credit in respect of the differential duty paid by the supplier on the inputs. 2. Shri Balasubramaniam, learned Councel for the ap....

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....n the credit-account maintained under sub-rule (3) of Rule 57G or in the accounts maintained under Rule 9 or sub-rule (1) of Rule 173G or, if such adjustment is not possible for any reason, by cash recovery from the manufacturer availing of credit under Rule 57A". On consideration of the above rule, we are of the view that there should be a variation in the rate of duty payable in respect of the input either by operation of law or by otherwise and in the present case it cannot be disputed that there was no variation in regard to the duty payable for the inputs in question and the same continued to be at 20% right through. Merely because the supplier committed a mistake in not clearing the input by paying 20% duty and paid only 12% duty and....