9911796707
TMI Blog2002 (5) TMI 795X X X X Extracts X X X X X X X X Extracts X X X X ..... ce record. - Whereas on scrutiny of RT 12 for June 1995, it is noticed that M/s. Everlon Synthetics Ltd., Mota Pondha has taken credit of Rs. 95255/- vide RG 23A part II Eno. 593 dated 12-6-1995. The amount of Rs. 95,255/- pertains to the credit taken on paper tube/oil etc., Since the credit on paper tube/oil etc., are not admissible since the same are not coming under the definition of inputs the amount of Rs. 95,255/- being the credit taken as above are not admissible to them and is recoverable from them under Rule 57-I of Central Excise Rules, 1944 . 3. The Appellants contested the demand a time bar and replied - It is submitted that in the captioned show cause cum demand notice, the superintendent of Central Excise has alleged f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w cause notice issued on 26-12-95 is accordingly not barred by limitation. In view of the above, I hold that the penalty of Rs. 2000/- imposed is proper. 5. The grounds in present appeal are - The Appellants submit that their final product was covered under Rule 57A and they were very much entitled for credit. However, the Commissioner (Appeals) has also erred in holding that demand was raised within 6 months. The Appellants submit that it is admitted position that Modvat credit of Rs. 95,255.05 represents the credit availed during the period from June 1994 to March 1995. Thereafter same was reversed by audit party and the Appellants took the contra credit entry thereof on 12th June 1995. The Appellants submit that the demand raised wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l product cannot be marked, conning oil is an essential oil to import Lubrication/Antistatic effect during the texturing process and without its use, the manufacture cannot be effected. That PTY was paying duty at Tariff rates therefore the value of packing Materials was to be made ineligible the objection which appears to have motivated the audit. That can not be upheld since Tariff values when fixed, under section 3(2) would take into consideration the costs of all inputs essential, which go to make the goods marketable. No material is forthcoming, that costs of issue paper tubes and oil have been excluded. Looking at from an other angle, what is not excluded from the definition of inputs under Rule 57A is Packing Material whose value ..... X X X X Extracts X X X X X X X X Extracts X X X X
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