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2002 (12) TMI 141 - AT - Central Excise
Issues Involved: Differential duty demands on goods cleared in bulk from factory, provisional assessments, pre-deposit of duty demands, necessity of revision of assessments, availability of Modvat/Cenvat credit, revenue neutrality.
Summary: 1. The appellants, manufacturers of 'Horlicks', faced differential duty demands for goods cleared in bulk from their factory due to delayed finalization of provisional assessments. The duty paid at the factory was availed as Modvat/Cenvat credit for duty on re-packed goods at packing stations. 2. The appeals challenged the differential duty demands for bulk clearances from the factory during 1994-2000, where delayed finalization led to revised assessable values and demands. Stay applications were dismissed for non-payment of duty demands, leading to the present appeals against the dismissal. 3. Additionally, a duty demand for Boost intermediates sold to a specific industry was not contested by the appellants. 4. The appellants argued that revision and payment of differential duty demands were unnecessary as duty paid at the factory was available as credit for duty at packing stations. They contended that the delayed assessments denied them the opportunity to adjust payments and that the demands should be quashed. 5. Citing precedents, appellants argued for relief, highlighting the Tribunal's authority to consider subsequent developments. The Revenue insisted on payment of differential duty as per Rule 9B of Central Excise Rules, disregarding the availability of credit at packing stations. 6. The Tribunal acknowledged the availability of credit for duty paid at the factory at packing stations, emphasizing the revenue-neutral nature of the situation. It deemed the insistence on differential duty payment unnecessary due to the excess duty already paid at packing stations, allowing the appeals without delving into the merits of the demands. 7. The Tribunal confirmed a duty demand for Boost intermediates but set aside the rest of the demands, considering the revenue neutrality and the delayed finalization of provisional assessments. 8. The appeals were disposed of accordingly.
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