TMI Blog2001 (10) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... uty on the final products under 57F of the Rules. Normally, the appellants manufactured the final products on the basis of the orders placed by its customers who are industrial customers, and manufactured by them hence the products were tailor-made. Amongst its customers, the appellants have as their customer the Defence Department of the Government of India. Whenever the appellant supplies the goods to the Defence Department, for such manufactured goods they do not pay any duty. This is because of Notification 4/97, dated 1-3-1997, which fixes the duty at nil rate subject to the following procedure under Chapter X of the Central Excise Rules. The facts of the case therefore are that at the time when the appellant took credit of the inputs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Credit in terms of a circular issued by the Ministry of Finance letter issued in File No. B-42/1/96-TRU, dated 27-9-96 reflected in Bombay Collectorate Trade Notice No. 70/96, dated 14-10-96 vide file No. V(30)1/GE/T/96 PT-I issued by Mumbai Collectorate where it was indicated as follows : "The matter has been examined and it is hereby clarified that the amount reversed is not by way of payment of excise duty. Accordingly, the amount of Modvat Credit reversed and shown in invoice by the manufacturer of exempted goods cannot be taken as credit by the user of exempted goods." 3. The contention raised by the assessee before us is that the amount demanded under Rule 57CC is not a duty. Therefore there is no machinery for collecting the am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y other final product" found in the earlier portion of the Rule 57CC. In the absence of that "any other final product", he says, rule 57CC may not at all be applicable. We are not giving our final view on this. 6. However, we may state that following the judgment of the Madras High Court in the case of Eternit Everest Ltd. v. U.O.I. 1997 (89) E.L.T. 28, whereunder in paragraphs 24 and 25, the Division Bench of the Madras High Court kept the liability intact to enable the proper authority for making the provisions of machinery for enabling collection and/or calculating amount to be collected from the assessee. We quote below the same : "24. We have endeavoured to consider the stand taken for the Union of India by the learned Senior Couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liability and obligation cast upon the petitioners if they have really been found to have collected any amount from the buyer of any goods in any manner as representing the duty of excise to pay the amount so collected to the credit of the Central Government preserved, protected and kept in tact and is not in any manner interfered with or undermined by this order. On and from the date on which the respondent-Union of India take steps and provide for required machinery, it shall be open to the respondent-Union of India or designated authority as the case may be to work out or quantify and determine the liability in the manner so prescribed or provided for in any liability thereof and recover the same in accordance with law. The consequence o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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