TaxTMI 
TaxTMI 
2002 (6) TMI 365
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....e C.E. Rules, 1944 read with Section 11A of the C.E. Act, 1944 and Section 3(3) of the AED (GSI) Act, 1957 being the AED payable on the unprocessed tyre cord fabric which were cleared during the period from June 1998 to December 1998. The Commissioner has also imposed a penalty of Rs. 5,00,000/- on the appellants. 2. Brief facts of the case are the appellants are engaged in the manufacture of Nylon Chips, Nylon Filament Yarn and Nylon Tyre Cord fabrics (both unprocessed and processed) falling under Chapter 39, 54 and 59 of the Schedule to the C.E.T., 1985. They also availed themselves of the credit of specified duty paid on the inputs used in the manufacture of their final product under Rule 57A of the CE Rules, 1944 read with Notif....
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....Rs. 1,01,73,524 and for imposition of penalty under Rule 173Q of C.E. Rules, 1944. After considering the reply furnished by the appellants and after hearing their Advocate accompanied by their representatives, the impugned order came to be passed demanding duty and imposing penalty as noted above. It is against this order of the Commissioner, the appellants have come in appeal before us on the following grounds : (a) proviso to Rule 57F(12) enables the appellants to utilize the credit of AED paid on the UTF captively consumed (as input) for payment of AED on the UTF cleared for home consumption as final product. The proviso to this Rule carves out an exception to the main rule and the said proviso reads as under :....
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....as been utilised towards payment of AED on the UTF (final product) in which the UTF is not used. (d) UTF cleared for home consumption has been duly declared as final product in the Modvat declaration filed under Rule 57F. (e) According to Rule 57F(12)(a) credit of AED paid on the UTF can be utilised for payment of AED on any of the final products in which the UTF is intended to be used viz. PTF. 4. Shri V. Sridharan, learned Counsel appearing for the appellants submitted that inasmuch as the appellants have satisfied the conditions laid under Rule 57F(12) and proviso thereto and hence the impugned order is liable to be set aside. He also cited the order passed by this Bench in th....
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.... 6. We have carefully considered the submissions made by both the sides. We find that the issue is no longer res integra as identical issue came up for consideration before this Bench in the appellants own case wherein we have allowed the appeal of the assessee-appellants vide Final Order No. 1962/2001, dated 8-11-2001. The finding arrived at by this Bench in para 4 to 6 are reproduced herein below : "4. We have carefully considered the submission made by both the sides and we are of the considered opinion that the issue is no longer res integra and has been decided by the Delhi Bench in the case of Modi Rubber Ltd. & Others v. CCE, Meerut reported in - 2000 (126) E.L.T. 1222 (T) = 2000 (39) RLT 830 (Trib.). The Delhi Bench of ....
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.... final product, if the said inputs have been received and used in the factory of production on or after the first day of March, 1997. Examining the facts of the case before us in the light of the requirement of the enacting clause, we find that the credit in the instant case is the credit of Additional Excise Duty paid on tyre cord fabric. The credit so taken of the Additional Excise Duty is utilized towards payment of Basic Excise Duty on tubes. Tyre Cord fabric is not used as an input in the manufacture of tubes. Tyre Cord fabric has been received and used in the factory of production on or after first day of March, 1997. Thus, we find that all the requirements of 'enacting' clause of Rule 57F(12) are fully complied with. In this view of ....