9911796707
TMI Blog1998 (12) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... se are that the appellant is engaged in the manufacture of various Dye-intermediates falling under Chapter 29 of the Central Excise Tariff Act, 1985. On 18-8-1992 the (Preventive) officers of the Central Excise division visited the company of the appellant and verified the records maintained to verify the correctness of the balance stock shown in R.G. 23A Part-I. On the checking of the physical stock of the inputs lying in the factory, there was a shortage in stock as compared to balance of stock shown in statutory records of the company of the appellant. The officers recorded the statements of Shri Mohanlal Sharma, Warehouse Officer and authorised representative, and Shri Shrinivas Narayan Molennawar, Production Incharge of Plant No. 2, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as admitted by the appellant. The appellant had removed Naphthalene of 93.227 M.T. valued at Rs. 24,23,902/- outside the factory premises without reversing the duty credit of Rs. 3,99,943 availed by them and without following the procedure under the Central Excise Act, and rules which has been admitted by the appellant and the duty credit involved had been reversed by them. The assessee had wrongly utilised the balance of credit amounting to Rs. 6,93,243.69 which was remaining in account at the time of opting for procedure under Rule 56A of the Central Excise Rules. It should be treated as lapsed and as the appellant had utilised the said credit which it was required to be recovered under Rule 9(2) and proviso (1) to sub-section (1) of Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (5) of Rule 56A read with proviso 2 to sub-section (1) of Section 11A of the Act, and also under Rule 9(2). The appellant has admitted the same and reversed entire amount of proforma credit voluntarily. The reversal of the above amounts it gets submerged into reversal contemplated in that para, as proforma credit involved in the issues explained in respect of the imported Naphthalene. 2. The show cause notice was issued on 22-1-1993 to the appellant calling upon them to explain the above defects, and to show cause why penalty should not be imposed on them under Rules 9(2), 52A, 173Q, 210 and 226 of the Central Excise Rules, 1944 and land, building, plant and machinery, materials, conveyance, animals or any other things used in conne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned order is passed on 1-2-1994 confirming the demand, and noting the voluntary payment of the same, imposed the penalty of Rs. 15,000/- and ordered for the confiscation of land, building, plant, machinery with redemption fine of Rs. 50,000/-. 3. In support of the appeal, Shri P.S. Kalve the ld. Consultant has submitted arguments that the amount of Rs. 6,93,243.69 which was lying in credit was the normal course availment of the credit. With the permission of the department on 31-3-1989 the credits were taken. None of the credits were availed, and they were in the account RT-12 returns filed were assessed by the department and the department is unknown of things. Since the appellants have reversed the credit as per the instructions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise Rules shows that the facility of continued credit is available to those already enjoying the proforma credit before 1-3-1986 and also those who were enjoying exemption under notification issued under Rule 8 requiring the procedure set out in the schedule to be followed. The appellants were eligible for the facility of proforma credit even if no declaration was made because of the fact that wording used at the beginning of the sub-rule (8) is "Notwithstanding anything contained elsewhere in this rule". In the circumstances the appellants are eligible for availing proforma credit with effect from 1-3-1986. (b) 1998 (102) E.L.T. 51 (Tribunal) in the case of Associated Beverages Pvt. Ltd. v. Collector of Central Excise, Shillo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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