1996 (3) TMI 317

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.... cylinders brought from outside for the purpose of testing (repairing and reconditioning, if necessary) on the old cylinders, which were in circulation, as per the requirements of Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum etc.  2. The appellants are engaged in the manufacture of LPG cylinders. These cylinders are mostly supplied to the aforesaid oil companies. After completion of 5 years in circulation, as per the statutory provisions under the existing Rules, they are required to be tested and wherever repairs are to be carried out, they have to be carried out. For this purpose, the oil companies send the old cylinders periodically to the appellants' factory. There is no dispute that the appellants were fil....

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....t of the goods and receipt within one year or warrantee period and this relaxation has been granted on 29-7-1992. However, the aforesaid demands have been confirmed only on the ground that during the period, there was no such relaxation granted by the Collector and hence, they have violated the conditions of Rule 173H.  4. Shri Bhatt pleads that ever in the Collector's finding, it is not denied that the cylinders are duty paid old cylinders received for testing. They have not cleared any new cylinders manufactured by them. When relaxation is granted by the Collector in the same set of circumstances subsequently, the Collector could have granted relaxation even at the time of adjudication of these show cause notices. Hence, the ....