9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2006 (1) TMI 372 - AT - Central Excise
Issues:
1. Utilization of credit for duty payment in August 2000. 2. Applicability of Rule 57 AB amendment. 3. Commissioner's decision on demand and penalty. 4. Respondent's compliance with Circular No. 542/38/2000-C.X. Analysis: 1. The appeal concerns the utilization of credit by the respondents for duty payment in August 2000. The Revenue argues that the credit of Rs. 3,40,122/- utilized by the respondents from 16-8-2000 to 18-8-2000 should not have been used for duty payment on 19-8-2000 for the first fortnight of August 2000. The Revenue contends that the amendment to Rule 57 AB through Notification No. 48/2000-C.E. (N.T.) dated 18-8-2000 restricted the utilization of credit up to the 15th day of the month for duty payment in the first fortnight of the month. 2. The Tribunal notes that the amendment to Rule 57 AB was indeed made on 18-8-2000, as clarified by Circular No. 542/38/2000-C.X. dated 25-8-2000. However, the respondent had already made the debit entry on 19-8-2000, prior to the issuance of the Board's Circular or even before receiving the Notification dated 18-8-2000. The Commissioner (Appeals) opined that even if the respondent had paid the duty from PLA, the credit would have been available for the next fortnight, rendering the exercise revenue-neutral. 3. The Commissioner's decision to drop the demand and penalty was based on the understanding that the credit would have been available for the subsequent fortnight, thereby maintaining revenue neutrality. The Tribunal concurs with this view and rejects the Revenue's appeal, finding no merit in the argument presented. The Tribunal upholds the Commissioner's decision, emphasizing the revenue-neutral nature of the situation. 4. The order was pronounced on 5-1-2006, affirming the Commissioner's decision and rejecting the Revenue's appeal. The Tribunal's analysis highlights the importance of compliance with Rule 57 AB amendments and the significance of maintaining revenue neutrality in duty payment scenarios.
|
