Customs, Excise and Gold Tribunal - Mumbai
Sweety Industries vs Commissioner Of Customs And Central ... on 12 October, 2001
JUDGMENT
1. The issue involved in the present appeal is whether the appellants are entitled to take modvat credit in respect of duty paid under Rule 57K to 57P of the Central Excise Rules by the input manufacturer through RG23B account or are entitled to take modvat credit only of the amount of duty paid by the manufacturer through RG23-A. The brief facts are that the appellant are manufactures of biscuits and availed modvat credit in respect of inputs used in the manufacture of biscuits. One of the inputs is vanaspati. Effective rate of duty of vanaspati from 01/03/1993 was Rs. 1,500/- PMT but credit was restricted to Rs. 900/- according to the provisions of Notification 177/86. In this case the manufacturer of vanaspati used minor oils and paid Rs. 1,500/- PMT, Rs. 500/- under RG-23A and Rs. 1,000/- under RG23B. The appellant who purchased vanaspati took modvat credit of duty paid @ Rs. 900/- PMT instead of Rs. 500/-. The department was of the view that modvat credit only to the extent of Rs. 500/- PMT was permissible to be availed since the gate passes showed that the manufacturer paid actual duty of Rs. 500/- PMT from PLA/RG23A Part II after adjustment/availing of money credit. The show cause notice dated 15/03/1994 was issued to the appellants on the above basis proposing recovery of differential duty of Rs. 400/- PMT. Notice was adjudicated by the Assistant Collector who discharged the show cause notice; the Commissioner (Appeals), however, set aside the order of the adjudicating authority and allowed the appeal of the Revenue by holding that what was due to the assessee as modvat credit benefit was the duty of excise actually paid through recognised channels i.e., PLA, RG23 Part II and RG23A Part II and not any duty set off under the money credit scheme for the manufacturers of vanaspati. Hence this appeal.
2. I have heard the learned DR and perused the records. I find that in the case of the same assessee by the final order No. C-II/1194-1195/99 WRB dated 07/05/1999 the Tribunal held that the assessees were entitled to take credit of Rs. 900/- PMT and credit entitlement was not restricted to Rs. 500/- PMT. Following the ratio of the above order on the set aside the impugned order and allow this appeal.