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TMI Blog1993 (1) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... k. The relief given to them by the Collector (Appeals) was by holding that the demand for duty for the period November, 1988[4] to February, 1988 was barred by limitation. The demand for the subsequent period upto August, 1988 was, however, held to be in time and the Assistant Collector's order confirming the demand to that extent was upheld. The penalty of Rs. 2,000/- imposed by the Assistant Collector was reduced to Rs.1,000/-. 2. The appellants were represented by Shri G.K. Mundhra, learned Chartered Accountant. He referred to the contentions raised in their Appeal Memorandum and submitted that they are engaged in the manufacture of both Black and White and Colour Television sets which fall under the same Tariff Heading. They had given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecovered, if need be from PLA. Shri Mundhra urged that this procedure supports their cases. Payment of duty from PLA will be necessary, as indicated in the Trade Notice, if need be. Here, in their case such a need had not arisen. 3. He referred to the following decisions in support of his submissions :- 1. 1990 (50) E.L.T. 456 (Tribunal) - Collector v. Ganga Vanaspati Ltd. 2. 1989 (40) E.L.T. 126 (Tribunal) - Tata Yodogawa Ltd. v. Collector 3. 1989 (41) E.L.T. 181 (Tribunal) - Sarvottam Ispat Ltd. v. Collector 4. 1991 (55) E.L.T. 437 (S.C.) - Mangalore Chemicals & Fertilizers Ltd. v. Dy. Commissioner 5. 1991 (52) E.L.T. 107 (Tribunal) - Hayvolt Electricals v. Collector 6. 1990 (47) E.L.T. 459 (Tribunal) - Grasim Industries Ltd. v. Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the Modvat credit earned from the component parts thereof. Whatever excess debit they had made from RG-23A account for payment of duty on Colour TV sets had been compensated by their having to pay duty on Black & White sets from their PLA account. In this manner, there is no loss to revenue. He pleaded that the duty demanded may be set aside and the debits made in the PLA and RG-23A accounts be allowed to be adjusted for Black & White and Colour TV sets. He also pleaded that the penalty be set aside as there was no case for the same. They had acted bona fide in the matter and there is also no actual loss of revenue. 4. The arguments were opposed by Shri A. Choudhury, learned Departmental Representative. He referred to the judgment of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble them to pay the duty on the Black & White sets from such8G-23A accounts is reasonable. The figures of credit earned and duty paid by them for both the Models have been supplied which are extracted hereunder: Payment of Duty Colour TV from Modvat Credit (RG-23 Account) Month Opening Balance Fresh Credit Available Duty paid from RG. 23A Closing Balance Excess payment of Duty March'88 - 1,20,000 59,250 60,750 - April'88 60,750 - 43,650 17,100 - May'88 17,100 - 56,700 - 39,600 June'88 - - 37,800 - 37,800 July '88 - 92 40,875 - 40,783 August '88 - 63,117 1,27,650 - 64,533 1,82,716 Payment of Duty on Black & White TV Sets from Personal Ledger Account Month Basic Duty Special Duty Total March ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d impossible by the rejection of their request by the Assistant Collector and also by their own failure to deposit the amount. But it was indicated before us that they could not deposit the amount in question due to their financial difficulty. Further they were seeking their remedy in appeal. The impugned order-in-original is dated 28-3-1989. The plea taken by them was canvassed before the Collector (Appeals) also but there is no discussion in his order-in-original about this request. The order-in-appeal is dated 9-1-1991. Against this order-in-appeal, they have filed the present appeal on 8-4-1991. During the pendency of this appeal, Black & White TV has become exempt from duty with effect from 24-7-1991. If they deposit the disputed amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount of relief is payable in cash or by cheque. 10. Applying the ratio of these decisions with reference to the present case, it is clear that the appellants' plea is valid and is acceptable. When their availment of Modvat credit for the purpose of payment of duty on the Colour TV sets was called into question by issue of show cause notice, they had requested that the amount charged to have been excess debited from their RG 23 for the above-said purpose may be permitted to be recredited to their RG 23A account to enable them to utilise the same for the purpose of payment of duty on Black & White TV sets for which such credit was admissible. This was not allowed by the Assistant Collector. They were paying duty on Black & White TV re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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