9911796707
TMI Blog1994 (11) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent. [Order per : Gowri Shankar, Member (T)]. - M/s. Monica Electronics Ltd., New Delhi had availed modvat credit of Central Exicse duty on picture tubes which is an input used for the manufacture of television sets. In the course of the visit by the Central Excise Officers it was found that the company had taken such credit of 305 picture tubes which were found to be defective and irreparabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final products. Therefore, in terms of sub-rule of Rule 157(d), a credit was correctly taken and could not be denied. He relied upon a decision of this Tribunal in Collector of Central Excise, Chandigarh v. Ludhiana Bottling Company [1992 (59) E.L.T. 327 (Tri.) = 1992 (19) E.T.R. 228]. 2. Shri M.K. Jain, learned SDR adopted the reasoning of the Additional Collector of Central Excise. He arg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to the production floor for the manufacture of TV's. Some of these picture tubes got spoiled by way of either breakage of the tubes, or scratches on the shell or other defects which rendered picture tubes unpreparable." The issue of components to the shop floor is a stage anterior to the component actually going into the stream of manufacture. Mere issue to the shop floor does not even necessari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... position of penalty under Rule 173Q. There is no allegation that the appellant at that set in the manner that it did otherwise than in the bona fidely belief that it was entitled to [get]. The facts of the case therefore, do not disclose the ground for imposition of penalty. The penalty imposed on the appellant is set aside. The appeal is disposed of accordingly. Consequential relief if any, will ..... X X X X Extracts X X X X X X X X Extracts X X X X
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