TMI Blog2005 (7) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... 99 cleared certain capital goods on payment of appropriate duty, in accordance with Rule 57S(1) of the Central Excise Rules 1944, by debiting the duty payable thereon in RG 23A Part II Account maintained for the credit of duty paid on inputs. 1.2 Commissioner vide in the impugned order, held that in terms of Rule 57F(12), the credit of specified duty allowed in respect of inputs could be utilize ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id factory. 2.2 Such Capital Goods, when removed from the factory in terms of Rule 57S(1) are to be treated as if they are manufactured in the appellants factory. Thus Rule 57S(1) creates a fiction that Capital Goods on which credit has been taken are to be treated as goods manufactured in the factory, when removed from such factory. 2.3 For this fiction created would induce us to uphold the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facture of such final product which would include final product by fiction of Rule 57S(1). The utilization of the credit of duty paid on the inputs towards payment of duty on such capital goods removed would be in accordance with the proviso to Rule 57F(12). 2.5 Demand is also found to be time-barred since there was no willful mis-statement or suppression of facts. In this view of penalty is cal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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