1998 (11) TMI 303

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..... [Order]. The appellants manufacture unmachined/machined castings falling under Chapter 73 of the Central Excise Tariff. On 31-7-1991, they prepared two Gate Passes and debited Rs. 4,026/- in RG 23A Part II credit account and another Rs. 295/- in their PLA. However, due to non availability of the transport, both the Gate Passes were cancelled, about which they sent intimation to the Cen .....

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..... n PLA finds it necessary to cancel any gate pass, he shall send an intimation thereof in writing to the proper officer not later than the working day next following the day of the cancellation of the gate pass and may thereupon take the credit of duty in that account. Therefore, it was held that the appellants were not entitled to take credit of duty in their RG 23A Part II account. The Commission .....

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..... where what he did was not at the time he did it illegal, any action which would impose a liability on him should be something clearly authorised by law. 3. Shri Ramtake, the ld. DR for the Revenue, however, pointed out that provisions in Rule 173G (2) is specific only for covering the situation of cancellation of gate pass and consequential credit in PLA and there is no such corresponding provi .....

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..... difications. The Collector (Appeals) in his order observed that the reference in the Rule is only to RG 23 account and not RG 23 account and therefore, the present case will not be covered by the wording of Rule 173G(1). However, it is to be noted that even in respect of the account RG 23 maintained for proforma credit purposes as well as Modvat credit purposes under RG 23A, situations are envisag .....

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..... harmonious reading of the provisions as above will not militate against allowing such a facility by adjustment in the Modvat credit. In the circumstances, there is substance in the contention of the appellants that in the absence of the specific provision providing for the situation in the statute, the same cannot be interpreted against the assessee. Therefore, on the facts and in the circumstanc .....

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