INDO NATIONAL LTD Vs. COLLECTOR OF C EX

JUDGEMENT

(1.) THIS appeal is directed against the order of the Collector of Central Excise (Appeals), Madras, dated 29-4-1988 con firming the order of the Assistant Collector of Central Excise, Nellore, dated 8-10-1987 directing the appellant to pay a sum of Rs. 69,120/- under Rule 57-I of the Central Ex cise Rules, 1944 hereinafter referred to as the 'Rules'.

(2.) The appellants herein are manufacturers of Electric Dry Batteries and one of the inputs for the same is Electro Carbon rods supplied to the appellants by M/s I.M.C.C. Ltd., Tada, A.P. The appellants received three consignments of the inputs viz. Electro Carbon Rods from their suppliers in March 1986 and took credit of a sum of Rs. 69,120 on the duty suffered by the inputs, in their R.G. 23 Pt. II account on 29-3-1986. Originally in respect of the same inputs, the appellants had taken a credit of Rs. 1,03,680 and the sum of Rs. 69,120/- was again availed as credit on the ground that the supplier though had initially cleared the inputs on payment of duty at the rate of 12% by mistake later paid the differential duty since the duty on the said inputs under law is 20% and not 10%. The supplier having paid the dfferential duty at the instance of the Department collected the same from the appellant herein and the appellants consequently took credit of the differential amount of Rs. 69,120/-. Proceedings were instituted against the appel lants by Issue of a show cause notice dated 30-6-1987 directing the appellants to show cause as to why the credit in respect of Rs. 69,120/- referred to supra should not be reversed under Rule 57-I of the Rules and the proceedings eventually resulted in the im pugned order now appealed against.

(3.) SHRI K.K. Bhatia, the learned S.D.R., submitted that Rule 57-E only deals with the situation where a credit allowed under Rule 57-A is varied subsequently and this Rule came into force on 15-4-1987. The learned S.D.R. urged that in the present case there does not appear to have been a variation in the rate of duty as such and there fore the issue may be remitted for consideration in the light of the applicability of Rule 57-A.