2007 (11) TMI 36

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....nder Rule 57E of the Central Excise Rules, '44 to enable the customer of LBE to take credit of the duty paid pursuant to the above adjudication order.  In the impugned order, the Commissioner (Appeals), Trichy set aside the direction of the Assistant Commissioner and allowed the appeal filed by LBE. 2. In this appeal filed by the Revenue, it is submitted that the duty involved related to clandestine clearances and came to be paid on detection of the evasion by the preventive officers of the department and adjudication of the dispute by the Commissioner.  Rule 57E did not provide for issue of certificate to avail credit where the duty was paid for clandestine clearances detected and adjudicated.  Though the rule did not conta....

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....ords and submissions by both sides.  In the case of EL Forge Ltd.(supra), this Tribunal found that in that case no duty was paid when goods were removed and duty was paid subsequently on insistence of the department. Hence it could not be a case of variation of duty and no certificate of payment of duty could be issued under Rule 57R (4) of erstwhile Central Excise Rules , 1944.   In CCE Vs. Dunlop (I) Ltd.(supra), the Tribunal vacated the order withdrawing 57E certificate as not proper.  It was decided in that case that amendment to Rule 57E had come into effect on 1.3.97 and did not have retrospective effect.  In CCE Vs. T.I. Metal Sections (supra), it was ordered that the duty demand made invoking proviso to Sect....

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....ppellant's customer was entitled to credit for this duty amount. 5.2. We find that the Apex Court in CCE Vs.  Home Ashok Leyland Ltd., (supra), made the following observations in paras 3 and 4 of its judgment. "3. ……… Rule 57A recognizes the right of the manufacturer to claim credit. Rule 57E recognizes not only the right of the manufacturer to claim credit but also the extent to which credit could be claimed for the duty paid on inputs. Therefore, Rule 57A is a substantive provision. However, the procedure of adjustment finds place in Rule 57E. Rule 57E is procedural provision. It deals with adjustments in duty credit. The object behind enacting Rules 57A, 57E and 57G is to avoid duty on duty whereby the price of the final pro....