9911796707
TMI Blog2002 (6) TMI 365X X X X Extracts X X X X X X X X Extracts X X X X ..... 3) of the AED (GSI) Act, 1957 being the AED payable on the unprocessed tyre cord fabric which were cleared during the period from June 1998 to December 1998. The Commissioner has also imposed a penalty of Rs. 5,00,000/- on the appellants. 2. Brief facts of the case are the appellants are engaged in the manufacture of Nylon Chips, Nylon Filament Yarn and Nylon Tyre Cord fabrics (both unprocessed and processed) falling under Chapter 39, 54 and 59 of the Schedule to the C.E.T., 1985. They also availed themselves of the credit of specified duty paid on the inputs used in the manufacture of their final product under Rule 57A of the CE Rules, 1944 read with Notification No. 24/94-C.E. (N.T.), dated 20-5-1994 as amended on capital goods used in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considering the reply furnished by the appellants and after hearing their Advocate accompanied by their representatives, the impugned order came to be passed demanding duty and imposing penalty as noted above. It is against this order of the Commissioner, the appellants have come in appeal before us on the following grounds : (a) proviso to Rule 57F(12) enables the appellants to utilize the credit of AED paid on the UTF captively consumed (as input) for payment of AED on the UTF cleared for home consumption as final product. The proviso to this Rule carves out an exception to the main rule and the said proviso reads as under : Provided that notwithstanding anything contained in Rule 57A and the notifications issued thereunder the cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7F. (e) According to Rule 57F(12)(a) credit of AED paid on the UTF can be utilised for payment of AED on any of the final products in which the UTF is intended to be used viz. PTF. 4. Shri V. Sridharan, learned Counsel appearing for the appellants submitted that inasmuch as the appellants have satisfied the conditions laid under Rule 57F(12) and proviso thereto and hence the impugned order is liable to be set aside. He also cited the order passed by this Bench in the appellants own case vide final order No. 1962/2001, dated 8-11-2001 and submitted that the issue is no longer res integra and is covered by the above decision in their own case and he sought for setting aside the impugned order and allowing the appeal. 5. Shri G.S. M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal Order No. 1962/2001, dated 8-11-2001. The finding arrived at by this Bench in para 4 to 6 are reproduced herein below : 4. We have carefully considered the submission made by both the sides and we are of the considered opinion that the issue is no longer res integra and has been decided by the Delhi Bench in the case of Modi Rubber Ltd. Others v. CCE, Meerut reported in - 2000 (126) E.L.T. 1222 (T) = 2000 (39) RLT 830 (Trib.). The Delhi Bench of the Tribunal in para 6 and 7 held as under :- 6. We have heard the submissions of the ld. Counsel as also the submissions of the ld. SDR. We find that the issue for our determination is whether sub-rule (12) of Rule 57F permits utilisation of credit of Additional Excise Duty for paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d fabric. The credit so taken of the Additional Excise Duty is utilized towards payment of Basic Excise Duty on tubes. Tyre Cord fabric is not used as an input in the manufacture of tubes. Tyre Cord fabric has been received and used in the factory of production on or after first day of March, 1997. Thus, we find that all the requirements of enacting clause of Rule 57F(12) are fully complied with. In this view of the matter, we find that the impugned order is erroneous, the same is, therefore, set aside and these appeals are allowed. From the above paragraphs, we find that the Tribunal considered the issue and held that all the requirements of enacting clause of Rule 57F (12) are fully complied with. In this view of the matter, we find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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