TMI Blog2003 (7) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Respondent. [Order per : Gowri Shankar, Member (T)]. Three issues are required to be considered in this appeal by Kalyani Brakes Ltd., S.B. Kulkarni, its manager. 2. The first issue is the value on which the appellant paid duty on parts of brake assemblies for motor vehicle when it cleared these from the factory of manufacture at Jalgaon to its own factory at Girgaum for furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wrong payment of duty of the appellant but is not able to say why the ratio of the decision of the Essel Packaging should not apply. 3. The Tribunal in Essel Packaging held that there would be no intent to evade duty by a manufacturer who pays lower duty on the goods that he cleared on his own factory for the reason that what was payable as duty in the one factory would be available as credit. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmal period, penalty imposed on this score is set aside. 4. The second issue relates to credit taken by the appellant duty paid on inputs which it subsequently wrote of in its books on the ground that they have become obsolete. The Commissioner concludes from this fact that in view of this obsolence the inputs could not have been utilised in the manufacture of credit has denied the credit and im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t taken on the goods when it knew it could not be utilised. Sub-rule (4) of Rule 57-I provides as follows. Where the credit of duty paid on inputs has been taken wrongly by reason of fraud, wilful misstatement, collusion or suppression of facts, or contravention of any of the provisions of the Act or the rules made thereunder with intent to evade payment of duty, the person who is liable to pay t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us in other words, its intention at the time of taking credit that it could not be taken and an intention to evade payment of duty will arise the moment credit is taken. Credit is intended for utilisation for payment of duty of finished goods. In the two issues that we are concerned, there is no such intention on the part of the manufacture and it is only after taking the credit where either by re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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