1999 (1) TMI 137

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..... een done is that the 9 invoices mentioned in the Annexure to the Order-in-Original show two values of other goods cleared by the consignors located at Pune. The first value is an enhanced value whereas the second value is denoted as the charged price which is a much lower one. The Revenue questions that when these consignments reached the present appellants who are based at Hyderabad, credit on these invoices were taken to the extent of the duty debited by the Pune consignor wrongly because they should have taken lesser credit in view of the goods having been sold to the consignee at a lower price. This is the only issue raised in this dispute. 2. Since the issue lies on a short compass, I take up for consideration the main appeal itself .....

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..... submits that in this case that is what exactly the appellants have done. They have not taken one single paise more as credit than what was paid on the goods when they were cleared by the manufacturers of the inputs. Ld. Consultant submits that the department has unnecessarily confused itself by raising the issue of the lower price charged by the input manufacturers from their sister concern at Hyderabad towards the present appellants. He submits that this is merely an internal book arrangement between them and has no relation to either the assessable value or the duty involved. He further submits that both the Order-in-Original as well as the Order-in-Appeal impugned erred by linking the issue of the assessable value charged with the credit .....

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..... ere not entitled to take credit for an amount equal to the amount of duty debited against this invoice by the manufacturer of the inputs at Pune for the simple reason that the manufacturer at Pune sold these goods on a concessional lower value to their sister concern at Hyderabad even while it had paid duty at the higher assessable value. I find that the submissions of the ld. Consultant have great merit because nowhere in the entire scheme under the Modvat rules starting from Rule 57A onwards, do I find any express or even indirect mention of the fact that the quantum of duty credit available under this scheme is linked to the value of the goods. Even the rule which deals with variation of duty talks of variation duty due to any reason and .....

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