9911796707
TMI Blog1996 (3) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... of testing (repairing and reconditioning, if necessary) on the old cylinders, which were in circulation, as per the requirements of Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum etc. 2. The appellants are engaged in the manufacture of LPG cylinders. These cylinders are mostly supplied to the aforesaid oil companies. After completion of 5 years in circulation, as per the statutory provisions under the existing Rules, they are required to be tested and wherever repairs are to be carried out, they have to be carried out. For this purpose, the oil companies send the old cylinders periodically to the appellants factory. There is no dispute that the appellants were filing D-3 declaration, in respect of receipt of such old cyli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s relaxation has been granted on 29-7-1992. However, the aforesaid demands have been confirmed only on the ground that during the period, there was no such relaxation granted by the Collector and hence, they have violated the conditions of Rule 173H. 4. Shri Bhatt pleads that ever in the Collector s finding, it is not denied that the cylinders are duty paid old cylinders received for testing. They have not cleared any new cylinders manufactured by them. When relaxation is granted by the Collector in the same set of circumstances subsequently, the Collector could have granted relaxation even at the time of adjudication of these show cause notices. Hence, the demand is not sustainable. He also refers to the Board s instruction issued from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of LPG cylinders, where the requirment of testing is only after 5 years period of circulation, it cannot be envisaged that the duty payment documents could be traced out and sent along with them. Hence the Rule itself provides that relaxation can be given to this condition by the Collector. It is not disputed that the collector on satisfying himself that in the same case of circumstances, has granted relaxation for the subsequent period. Unless during the period in dispute, the Department has any materials to prove that cylinders received are non duty paid, the relaxation would hold good even during the earlier period. In these circumstances, we are of the view that relaxation of the condition granted by the collector would hold ..... X X X X Extracts X X X X X X X X Extracts X X X X
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