COMMISSIONER OF CENTRAL EXCISE Vs. PAALIPALAYAM SPINNING MILLS

JUDGEMENT

(1.) THIS Revenue appeal against Order -in -Appeal No. 41/98 dated 21.7.98 passed by the Commissioner (Appeals), Trichy.

(2.) THE Assistant Collector of Central Excise disallowed the deduction towards freight and interest receivables and confirmed duty of Rs. 17,43,449/ -. The reason for the demand is that the respondents collected the duly on Page 457 freight and interest on receivables. The Assistant Commissioner has not accepted the repayment of duty collected on freight and interest on receivables by way of issuing credit note to the customers. However, the respondents were successful before the Commissioner (Appeals). The Commissioner (Appeals) allowed the respondents' appeal on merits. Aggrieved over the Commissioner (Appeals)'s order the Revenue come to the Tribunal for relief on the following grounds:

(3.) SMT . R. Bhagya Devi, Id. SDR appeared for the Revenue and Shri T. Ramesh, ld. Counsel for the respondents. Ld. Counsel made the following submissions: