9911796707
TMI Blog1987 (7) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... y was not determinable at the time of clearance of such goods, did not make average weekly deposits of duty on the basis of the previous month's duty payment and corresponding debits thereafter in the months of April and May, August and October, 1983. It has been held in the first impugned order that the appellant-company should have debited the duty to the tune of Rs. 4,69,08,058.05 during the months of April and May, 1983; but it actually debited only Rs. 2,88,63,600.00. Breach of procedure of Rule 173-PP has, therefore, been upheld by the learned Collector. Accordingly, he has imposed a penalty of Rs. 7 lakhs on the appellant company under Rule 173-Q of the Central Excise Rules, 1944 vide the first impugned order. 2. The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of duty. In particular, he cited 1985 (19) E.L.T. 447 and 1985 (22) E.L.T. 575. 4. Learned SDR has reiterated the findings in the impugned orders. He has also drawn attention to the cross-objections filed by the learned Collector which simply pray for maintenance of the impugned order. 5. We have carefully considered the pleas advanced by both sides. Sub-rule (1)173-PP states as follows:- "(1) In relation to these excisable goods comprised in Item, 68 of the First Schedule to the Act, the provisions of Rules 173-B to 173-P shall apply subject to the modifications specified in sub-rules (2) to (5)". Further, sub-rule (5) states as follows:- "(5) Where the quantum of duty cannot be determined, at the time of removal o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Re-print Edition, February, 1986 written by Shri R.K. Jain which gives in brief the terms of relaxation generally allowed by the Collectors under Rule 173-PP(5). It is reproduced below for proper appreciation's- - "(3) The Collectors in exercise of the above mentioned powers have given the following relaxations to the assessees manufacturing goods, under Tariff Item 68 but these relaxations will be allowed by the Collector in each case on merits". xx xx xx xx xxxx (c) Where the quantum of duty is not determinable at the time of removal of the goods for any reason, duty may be determined and paid within one week of clearance of the goods and even if that is not possible, the assessee may make debit entry equal to an average weekly duty p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T. 447 appears to be well founded. 9. However, the position is different with regard to the other two appeals namely No. 1907 and 1908. According to the appellant company's own admission, in the month of August, 1983, ad hoc deposits of Rs. 38.42 lakhs only were made against the required ad hoc deposits of Rs. 105 lakhs based on excise duty paid during the month of July, 1983. The actual duty liability during the month of August, 1983, according to the company came to Rs. 54,85,731.52. The difference between the ad hoc deposit and actual excise duty liability was, therefore, Rs. 16.43 lakhs. This was adjusted by the appellant company in the first week of September, 1983. On the basis of the appellant company's own admission, it is he ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
