2002 (8) TMI 757 - AT - Central Excise

Tribunal rules on debiting amount from PLA for job worker inputs without re-crediting duty

The Tribunal directed the appellant to debit the amount from PLA and take credit in RG-23A part-II for sending inputs to a job worker, following a ... Cenvat/Modvat - Cenvat/Modvat - Demand - Penalty - Personal penalty Issues:1. Interpretation of Rule 57F regarding credit of duty in PLA or RG-23A part-II.2. Time limit for re-crediting duty on goods sent to job worker.3. Imposition of personal penalty.Analysis:Issue 1: Interpretation of Rule 57F regarding credit of duty in PLA or RG-23A part-IIThe appellant was confirmed a demand of Rs. 38,941.25 for debiting duty at 10% while sending inputs to a job worker under Rule 57F. The Revenue contended that credit cannot be taken in PLA as per Rule 57F(7) and should be in RG-23A part-II. The appellant argued for an alternative remedy based on a previous Tribunal decision. The Tribunal directed the appellant to debit the amount from PLA and take credit in RG-23A part-II, following the precedent.Issue 2: Time limit for re-crediting duty on goods sent to job workerAnother demand of Rs. 9,925.65 was confirmed against the appellant for not re-crediting duty on inputs received after 60 days from the job worker. The appellant claimed they had debited the amount at clearance but did not re-credit upon receipt. The Tribunal found merit in the appellant's argument, stating that if goods are not received within the time-limit and no extension is sought, re-crediting is not possible. The duty cannot be demanded again on goods received. The order lacked clarity on the legal provisions for demanding duty on such goods. As the appellant agreed not to re-credit the amount, the demand for duty was unjustified.Issue 3: Imposition of personal penaltyRegarding the personal penalty of Rs. 5,000, the Tribunal found the issues to be genuine interpretations of legal provisions without any malice from the appellant. Consequently, the penalty was set aside, and the appeal was disposed of accordingly.