TaxTMI 
TaxTMI 
1993 (1) TMI 157
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....tor of Central Excise, Cuttack. The relief given to them by the Collector (Appeals) was by holding that the demand for duty for the period November, 1988[4] to February, 1988 was barred by limitation. The demand for the subsequent period upto August, 1988 was, however, held to be in time and the Assistant Collector's order confirming the demand to that extent was upheld. The penalty of Rs. 2,000/- imposed by the Assistant Collector was reduced to Rs.1,000/-. 2. The appellants were represented by Shri G.K. Mundhra, learned Chartered Accountant. He referred to the contentions raised in their Appeal Memorandum and submitted that they are engaged in the manufacture of both Black and White and Colour Television sets which fall under the same ....
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....and differential duty will be recovered, if need be from PLA. Shri Mundhra urged that this procedure supports their cases. Payment of duty from PLA will be necessary, as indicated in the Trade Notice, if need be. Here, in their case such a need had not arisen. 3. He referred to the following decisions in support of his submissions :- 1. 1990 (50) E.L.T. 456 (Tribunal) - Collector v. Ganga Vanaspati Ltd. 2. 1989 (40) E.L.T. 126 (Tribunal) - Tata Yodogawa Ltd. v. Collector 3. 1989 (41) E.L.T. 181 (Tribunal) - Sarvottam Ispat Ltd. v. Collector 4. 1991 (55) E.L.T. 437 (S.C.) - Mangalore Chemicals & Fertilizers Ltd. v. Dy. Commissioner 5. 1991 (52) E.L.T. 107 (Tribunal) - Hayvolt Electricals v. Collector 6. 1990 (47) E.L.T. ....
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....had paid more duty on Black & White TV sets than the Modvat credit earned from the component parts thereof. Whatever excess debit they had made from RG-23A account for payment of duty on Colour TV sets had been compensated by their having to pay duty on Black & White sets from their PLA account. In this manner, there is no loss to revenue. He pleaded that the duty demanded may be set aside and the debits made in the PLA and RG-23A accounts be allowed to be adjusted for Black & White and Colour TV sets. He also pleaded that the penalty be set aside as there was no case for the same. They had acted bona fide in the matter and there is also no actual loss of revenue. 4. The arguments were opposed by Shri A. Choudhury, learned Departmental R....
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....ion to credit said wrong debit in their RG-23A to enable them to pay the duty on the Black & White sets from such8G-23A accounts is reasonable. The figures of credit earned and duty paid by them for both the Models have been supplied which are extracted hereunder: Payment of Duty Colour TV from Modvat Credit (RG-23 Account) Month Opening Balance Fresh Credit Available Duty paid from RG. 23A Closing Balance Excess payment of Duty March'88 - 1,20,000 59,250 60,750 - April'88 60,750 - 43,650 17,100 - May'88 17,100 - 56,700 - 39,600 June'88 - - 37,800 - 37,800 July '88 - 92 40,875 - 40,783 August '88 - 63,117 1,....
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....s had deposited the said amount, the wrongly utilised credit amount would have been credited to the RG 23A account which then would have been utilised by them for payment of duty on Black & White TV Receivers which was legitimately admissible. This solution was rendered impossible by the rejection of their request by the Assistant Collector and also by their own failure to deposit the amount. But it was indicated before us that they could not deposit the amount in question due to their financial difficulty. Further they were seeking their remedy in appeal. The impugned order-in-original is dated 28-3-1989. The plea taken by them was canvassed before the Collector (Appeals) also but there is no discussion in his order-in-original about this ....
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....rpose of transfer of the same to RG 23A. 9. In the MRF cases, it was held by the Tribunal that if availment of relief due towards payment of duty on the finished excisable goods is not permissible by credit in the Personal Ledger Account or the appropriate account, then the amount of relief is payable in cash or by cheque. 10. Applying the ratio of these decisions with reference to the present case, it is clear that the appellants' plea is valid and is acceptable. When their availment of Modvat credit for the purpose of payment of duty on the Colour TV sets was called into question by issue of show cause notice, they had requested that the amount charged to have been excess debited from their RG 23 for the above-said purpose may be pe....