1997 (4) TMI 232

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....for the Appellant. Shri Y.R. Kilaniya, JDR, for the Respondents. [Order]. - A duty demand of Rs. 3,23,806/- has been confirmed against the appellants herein on the ground that this amount was utilised as money credit on ethyl alcohol subsequent to 1-4-1994 which is the date on which money credit scheme came to an end by rescinding of Notification 10/94, dated 1-3-1994 (which came into for....

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....hol because of the undisputed position that ethyl alcohol on which the credit was taken, was received in the factory of the appellants prior to 1-4-1994 as evidenced by GPls issued by the State Excise Authorities (pages 18 to 20 of the paper book) dated 29th, 30th and 31st March, 1994. He further submits that the penalty of Rs. 1 lakh imposed by the adjudicating authority for contravention of Rule....

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....rk "Scheme of money credit is wound up w.e.f. 1-4-1994. Hence the balance of money credit not to be used until further instructions received from the Divisional Office". It is on this basis the adjudicating authority has held that once the Inspector made this remark on 1-4-1994 at a time when the credit of Rs. 3,23,806/- was not in the balance of the appellants, it is established that the entries ....

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....the appellants on 29th, 30th and 31st March, 1994 under cover of State Excise gate passes. The Department has not been able to rebut this categoric assertion of receipt of ethyl alcohol before 1-4-1994 which is backed by relevant State Excise documents. Therefore, I agree with the learned Counsel for the appellants that since credit accrues on goods and the goods in question have been received bef....