TMI Blog2005 (9) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... trast reading of Rule 57F(4) without the proviso and with the proviso that the earned credit could be utilised only in the manner specified in the said rule sub-rule (i) allows such utilisation towards payment of duty of excise on any of the final products in or in relation to the manufacture (emphasis provided) of which such inputs are intended to be used. Reasonable interpretation and conclusion from the above reading, which follows, is that if such inputs are not intended to be used in or in relation to manufacture of a final product, earned credit would not be available for use. However, with the addition of proviso, the entire scenario changed. The proviso starts with 'notwithstanding anything contained in sub-rule (1) of Rule 57A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ners, spiral paper tubes etc. During the relevant period i.e. from April, 1993 to October, 1993, they availed the benefit of Modvat credit of duty paid on the tin plates used in the manufacture of battery parts but utilised the credit for payment of duty in respect of other final products, in the manufacture of which such tin plates were never utilized. 2. On the above basis, proceedings for denial of credit of Rs. 1,56,207.48 so availed on tin plates but used for discharge of duty on other final product other than battery parts, were initiated which culminated into the impugned orders passed by the authorities below, vide which demand was confirmed and penalty of Rs. 5000/- was also imposed. It has been observed in the said orders that pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of final product. He also re-iterated his alternative plea of restoring credit in RG 23A Part II, in case they are directed to pay duty out of PLA. He also submitted that it being a bona fide legal dispute about interpretation of provisions of law and the final product having been cleared on statutory excise documents after debiting duty, no penalty should have been imposed upon. 4. Countering the arguments, ld. JDR, Shri N.V.B Nair submits that prior to introduction of Proviso to Rule 57F(4) with effect from 16-3-95 there was no provisions for extension of such benefit. The dispute has to be decided by referring to the provisions as they existed during the period under dispute. He further contended that there is nothing to suggest that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared under sub-rule (1)] : 6. As it is clear from contrast reading of Rule 57F(4) without the proviso and with the proviso that the earned credit could be utilised only in the manner specified in the said rule sub-rule (i) allows such utilisation towards payment of duty of excise on any of the final products in or in relation to the manufacture (emphasis provided) of which such inputs are intended to be used. Reasonable interpretation and conclusion from the above reading, which follows, is that if such inputs are not intended to be used in or in relation to manufacture of a final product, earned credit would not be available for use. However, with the addition of proviso, the entire scenario changed. The proviso starts with 'notwith ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fferent sizes, some of which were also be exported. It was in these circumstances, Tribunal observed that the word 'similar' as appearing in Rule 57F(98) was wide enough to cover picture tubes of various sizes. In fact in para 15 of said judgment, reference has been made to earlier decisions where record players and two-in-ones cassette players and Black White T.V. Sets and colour T.V. Sets were held to be different goods. In the instant case, admittedly, battery parts and paper drums are two different, in fact, poles aparts, goods. The said decision, as such does not advance appellants case. 8. The appellants have also referred to the Tribunal's decision in the case of Hindustan Petroleum Corporation Limited v Commissioner of C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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