9911796707
TMI Blog1997 (4) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant. Shri Y.R. Kilaniya, JDR, for the Respondents. [Order]. - A duty demand of Rs. 3,23,806/- has been confirmed against the appellants herein on the ground that this amount was utilised as money credit on ethyl alcohol subsequent to 1-4-1994 which is the date on which money credit scheme came to an end by rescinding of Notification 10/94, dated 1-3-1994 (which came into force on 1-4-1994) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he undisputed position that ethyl alcohol on which the credit was taken, was received in the factory of the appellants prior to 1-4-1994 as evidenced by GPls issued by the State Excise Authorities (pages 18 to 20 of the paper book) dated 29th, 30th and 31st March, 1994. He further submits that the penalty of Rs. 1 lakh imposed by the adjudicating authority for contravention of Rule 173Q(1) (PP) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y credit is wound up w.e.f. 1-4-1994. Hence the balance of money credit not to be used until further instructions received from the Divisional Office". It is on this basis the adjudicating authority has held that once the Inspector made this remark on 1-4-1994 at a time when the credit of Rs. 3,23,806/- was not in the balance of the appellants, it is established that the entries in respect of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th, 30th and 31st March, 1994 under cover of State Excise gate passes. The Department has not been able to rebut this categoric assertion of receipt of ethyl alcohol before 1-4-1994 which is backed by relevant State Excise documents. Therefore, I agree with the learned Counsel for the appellants that since credit accrues on goods and the goods in question have been received before the rescinding o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect the rights already accrued to them by way of credit and it is open to the manufacturers to utilise the same even after the lapse of the Notification. Following the ratio of the above orders, I hold that credit of Rs. 3,23,806/- has rightly been availed as money credit by the appellants on ethyl alcohol received by them prior to 1-4-1994 and accordingly set aside the demand of duty and penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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