Customs, Excise and Gold Tribunal - Delhi
Delphi Automotive Systems Ltd. vs Cce on 10 April, 2002
Equivalent citations: 2002(81)ECC223
ORDER S.S. Kang, Member (J)
1. Applicants filed these applications for waiver of pre-deposit of duty of Rs. 4,45,97,692 and penalty of the same amount on the Firm and penalty of Rs. 10 lakhs on Shri Dinesh Chabbra.
2. Heard both sides.
3. The adjudicating authority in the impugned order held that applicants were clearing Car Air Conditioner Kits to the various manufacturer of cards (sic) [cars] whereas the case of the applicants is that they were manufacturing some parts of the Car Air Conditioner and clearing the parts only and they are entitled for the benefit of concessional rate of duty applicable to the parts of Air Conditioner.
4. The contention of the applicants is that the Car air conditioner consists of several parts whereas the applicants are manufacturing only compressors along with some parts such as Blower motors, condensers and heat evaporator, whereas the Car air conditioning kit also requires Electric Control Unit, Control Head, A/c Switch, Relay, Air distribution Ducts, V. Belt, Compressor mounting bracket Idler Pulley, Hoses lines & fittings, Shround & Fan Assembly. Applicants also pleaded for financial hardship.
5. The contention of the Revenue is that applicants are manufacturing some parts and they were also importing other parts and were clearing the same from their Trading Warehouse, therefore, applicants are supplying the Car Air Conditioner Kits to the manufacturer of cars. The Revenue relied upon the decision of the Tribunal in the case of Sanden Vikas (I) Ltd. v. Collector of Central Excise, New Delhi, and in the case of Universal Commercial Corpn. v. Collector of Customs, Delhi to submit that the Car Air conditioner Kits are complete Air conditioner.
6. The case of the applicants is arguable. In view of the decisions relied upon the Revenue, Prima facie, it is not a fit case for total waiver of duty. The applicants also pleaded financial hardship. From the Balance-sheet for the year ending 31st March, 2000, shows the income from sale is more than Rs. 400 crores. Taking into facts and circumstances of the case, the applicants are directed to deposit a sum of Rs. 50 lakhs (Rupees Fifty lakhs only) within a period of 8 (eight) weeks. On deposit of Rs. 50 lakhs the deposit of remaining amount of duty and penalty is waived for hearing of the appeals. To come up for reporting compliance on 17-6-2002.