BATLIBOI LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellants herein are engaged in the manufacture of diesel generating sets. They had cleared control panels on various dates by discharging duty @ 13% advalorem instead of adopting the correct rate of duty at 18% advalorem payable on the goods. The consequential differential duty of Rs. 1,30,469/ - was therefore required to be paid by the assessees. Further, they had not paid appropriate duty on Rs. 1,60,000/ -, the invoice value of 180 KV Alternator cleared under invoice dt. 23.4.97 to M/s. Prime Plast, Vijayamangalam, of Rs. 20,800/ - out of which only Rs. 4,545/ - was paid as duty and therefore differential duty of Rs. 16,255/ - was also required to be paid. Show cause notice raising differential duty demand of Rs. 1,46,724/ - (Rs. 1,30,469 + Rs. 16,255) involved in the clearance of control panels and alternator was issued. The notice proposed penal action against the assessees. The notice was adjudicated by the Asst. Commissioner who dropped the demand but imposed penalty of Rs. 2000/ - vide Order -in -Original No. 37/98 dt. 27.3.98; the Revenue preferred appeal before the Commissioner (Appeals) who vide his Order -in -Appeal No. 102/03 dt. 9.7.03 set aside the adjudication order and allowed the appeal of the Revenue. This has given rise to Appeal No. E/18/04.

(2.) APPEAL No. E/19/04 involves the issue of reversal of credit of Rs. 99,300/ - on two control panels of 1250 KV cleared to M/s. Lakshmi Machine Works, Coimbatore - - an amount of Rs. 90,000/ - alone was paid while credit of Rs. 1,89,300/ - was taken, and this resulted in a notice for reversal of credit of the balance amount of Rs. 99,300/ -. The notice was adjudicated by the Asst. Commissioner who dropped the proceedings for reversal, however imposed penalty of Rs. 1000/ -; Commissioner (Appeals) accepted the contention of the Revenue that the assessees had made short -payment of Rs. 99,300/ - as per the relevant Rule namely Rule 57F(1)(ii) and hence allowed the Revenue's appeal. This has given rise to Appeal No. E/19/04.

(3.) IN the next case, we see no reason to interfere with the order of the Commissioner (Appeals) directing reversal of credit. However, in the light of the Larger Bench decision in Commissioner of C.Ex., Vadodara v. Asian Brown Boveri Ltd. : 2000 (120) ELT 228, the assesses are required to reverse an amount equal to the credit taken. We uphold the impugned order and dismiss appeal No. E/19/2004.