1990 (4) TMI 127

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....I. 68 and were cleared without payment of duty for captive consumption under Notification Nos. 118/75 and 167/79 applicable to goods classifiable under T.I. 68. However, these exemptions were withdrawn consequent on introduction of MODVAT Scheme in the Budget of 1986. This was pointed out by themselves. They initially filed the classification list indicating the rate of duty @ 20% in the absence of any exemption for captive consumption. They however in their letter dated 23-3-1986, have clearly indicated that they are eligible for MODVAT benefit since both the inputs and final products are notified under the MODVAT Scheme. However, this involves cumbersome work for payment of duty at the intermediate stage and taking credit thereof towards ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ods by the erstwhile Notification No. 117/85 and No. 167/79, they are clearly covered by Retrospective Legislation and even if the duty had been paid, they are entitled to refund. The Collector however has confirmed the demand and imposed a penalty on the ground that no records have been maintained in respect of the captively consumed parts and they themselves have got the classification list approved indicating the rate of duty at 20%, which has become final and not appealed against. He, therefore, contended that the demand and imposition of penalty are not justified in view of the clear position of Retrospective Legislation. He, therefore, sought for unconditional stay on this ground. 3. Heard Shri C.P. Arya, the learned SDR. He invite....