1993 (9) TMI 207

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..... Member (J)]. COD For the reason stated in the petition, we condone the delay in filing a separate connected appeal. Appeals 2. The above appeals arise out of a common impugned order of the Collector of Central Excise (Appeals), Madras dated 9-2-1990. 2. Shri Venkataraman, the learned Counsel for the appellant submitted that the issue that arises for determination in the appeals is whethe .....

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..... he appellant had paid. 3. Shri Gregory, the learned SDR contended that in terms of Rule 57E the Department has got power to vary and modify the input credit taken by a manufacturer and in the present case the various purchasers whose names the appellant has given had taken Modvat credit in respect of the excess amount in regard to which the appellant got refund from the Department. Therefore, it .....

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..... pellant is sought to be recovered only on the ground that it is for the appellant to indemnify the Government for the possible loss of revenue as a result of their getting the refund of excess duty paid and the consignee/C.E. assessee taking higher credits . The fact that the appellant paid the amount in excess is admitted. In such a situation the appellant is entitled to the grant of refund and .....

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..... rly in regard to taking of credit on the duty suffered by the goods or inputs by the various buyers is something with which the appellant is not in any way concerned. The reasoning of the learned Collector (Appeals) that the appellant should indemnify the Department for any possible loss does not have any foundation or force either in the Act or in the Rules. The appeals are therefore, allowed. .....

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..... ents issued by the manufacturer and the lower duty found payable later by him the necessary action to recover the excess amount has to be taken at that time in terms of Rule 57E against the consignee. The Department is under the misapprehension that it is the responsibility of the supplier of the inputs to ensure the reversal of the Modvat credit. This position is not based on any provision of the .....

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