TMI Blog1993 (1) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... als) was by holding that the demand for duty for the period November, 1988[4] to February, 1988 was barred by limitation. The demand for the subsequent period upto August, 1988 was, however, held to be in time and the Assistant Collector s order confirming the demand to that extent was upheld. The penalty of Rs. 2,000/- imposed by the Assistant Collector was reduced to Rs.1,000/-. 2. The appellants were represented by Shri G.K. Mundhra, learned Chartered Accountant. He referred to the contentions raised in their Appeal Memorandum and submitted that they are engaged in the manufacture of both Black and White and Colour Television sets which fall under the same Tariff Heading. They had given both the Models in a common declaration and they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that this procedure supports their cases. Payment of duty from PLA will be necessary, as indicated in the Trade Notice, if need be. Here, in their case such a need had not arisen. 3. He referred to the following decisions in support of his submissions :- 1. 1990 (50) E.L.T. 456 (Tribunal) - Collector v. Ganga Vanaspati Ltd. 2. 1989 (40) E.L.T. 126 (Tribunal) - Tata Yodogawa Ltd. v. Collector 3. 1989 (41) E.L.T. 181 (Tribunal) - Sarvottam Ispat Ltd. v. Collector 4. 1991 (55) E.L.T. 437 (S.C.) - Mangalore Chemicals Fertilizers Ltd. v. Dy. Commissioner 5. 1991 (52) E.L.T. 107 (Tribunal) - Hayvolt Electricals v. Collector 6. 1990 (47) E.L.T. 459 (Tribunal) - Grasim Industries Ltd. v. Collector Shri Mundhra contended that if t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nent parts thereof. Whatever excess debit they had made from RG-23A account for payment of duty on Colour TV sets had been compensated by their having to pay duty on Black White sets from their PLA account. In this manner, there is no loss to revenue. He pleaded that the duty demanded may be set aside and the debits made in the PLA and RG-23A accounts be allowed to be adjusted for Black White and Colour TV sets. He also pleaded that the penalty be set aside as there was no case for the same. They had acted bona fide in the matter and there is also no actual loss of revenue. 4. The arguments were opposed by Shri A. Choudhury, learned Departmental Representative. He referred to the judgment of the Honourable Orissa High Court in Konark ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... White sets from such8G-23A accounts is reasonable. The figures of credit earned and duty paid by them for both the Models have been supplied which are extracted hereunder: Payment of Duty Colour TV from Modvat Credit (RG-23 Account) Month Opening Balance Fresh Credit Available Duty paid from RG. 23A Closing Balance Excess payment of Duty March 88 - 1,20,000 59,250 60,750 - April 88 60,750 - 43,650 17,100 - May 88 17,100 - 56,700 - 39,600 June 88 - - 37,800 - 37,800 July 88 - 92 40,875 - 40,783 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y observing that the said request was admissible, indicated that the same could be considered only if the amount was deposited by them. If the appellants had deposited the said amount, the wrongly utilised credit amount would have been credited to the RG 23A account which then would have been utilised by them for payment of duty on Black White TV Receivers which was legitimately admissible. This solution was rendered impossible by the rejection of their request by the Assistant Collector and also by their own failure to deposit the amount. But it was indicated before us that they could not deposit the amount in question due to their financial difficulty. Further they were seeking their remedy in appeal. The impugned order-in-original is d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Once the credit was allowed, it has to be held that the same will have to be deemed to be available in RG 23 as envisaged under Rule 57H(3) for the purpose of transfer of the same to RG 23A. 9. In the MRF cases, it was held by the Tribunal that if availment of relief due towards payment of duty on the finished excisable goods is not permissible by credit in the Personal Ledger Account or the appropriate account, then the amount of relief is payable in cash or by cheque. 10. Applying the ratio of these decisions with reference to the present case, it is clear that the appellants plea is valid and is acceptable. When their availment of Modvat credit for the purpose of payment of duty on the Colour TV sets was called into question by iss ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
