9911796707
TMI Blog1999 (6) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... the same is not demandable. (c) An amount of Rs. 6318.00 is confirmed and demandable under Rule 57G. (d) Out of the total credit of Rs. 1430/- party has irregularly availed credit of Rs. 159/- and Rs. 417/- totalling Rs. 636/-. Thus I confirm the demand of Rs. 636/- against the party. The above demands are confirmed under Rule 57U of CER, 1944. I also impose a penalty of Rs. 1500/- on M/s. Threads India Ltd., Kampur Dehat under Rule 173Q of CER, 1944". 2. On appeal, ld. Commissioner (Appeals) held as under : "I have examined the case carefully, I find that the adjudicating authority has disallowed the credit on the ground that the appellants had not filed declaration of the impugned goods. In this regard the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that they had described in their declaration of the goods as electric motors classifiable under Chapter heading 85.01; that electric motors classifiable under Chapter Heading 85.01 are capital goods; that electric motors are correctly classifiable under Chapter Heading 85.01 and not under Chapter Heading 8448.90; that they have purchased these electric motors from M/s. Lohia Starlinger Ltd.; that they were not answerable if the manufacturer of the inputs had classified them under Chapter Heading 84.48; that misdeclaration by the manufacturer cannot be the basis for denying Modvat credit; that the appellants had made declaration and filed the same; that receipt of the electric motors from the suppliers is not disputed; that distance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds are described as electric motors. Thus, I hold that there is no mistake in declaration. If the Chapter Heading given by the supplier of the inputs is different from the Chapter Heading given by the appellants, I find that the declaration was required to be filed before the receipt of the goods. Electric motors fall under Chapter Heading 85.01 and therefore, the declaration at the time of its submission was correct as the appellants had only purchased electric motors. Regarding denial of Modvat on Distance piece described by the appellants as a Spacer I give the appellants the benefit of doubt in view of the fact that Distance piece can be called as a Spacer. Similarly, a component declared as support. The Department has not placed anythi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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