Customs, Excise and Gold Tribunal - Mumbai
Ghodawat Foods International Pvt. Ltd. vs Commr. Of C. Ex. on 1 May, 2006
ORDER
Jyoti Balasundaram, Vice-President
1. The application for waiver of pro-deposit of duty of Rs. 2,20,752/- (Rupees two lakhs twenty thousand seven hundred fifty-two only) and penalty of equal amount, arises out of the order of the Commissioner of Central Excise (Appeals), Pune, who has upheld the demand and penalty confirmed against the applicants herein by the Deputy Commissioner on the ground that the activity of repacking RBD palmoline oil in bulk (received by the appellants in tankers) into retail packs and labelled with Star brand, amounted to manufacture within the meaning of Note 4 to Chapter 15 of the schedule to the Central Excise Tariff Act, 1985.
2. On hearing both sides, we find that the Commissioner (Appeals) hasprima facie rightly distinguished the Tribunal's order in Ammonia Supply Co. v. CCE, New Delhi relied upon by the applicant herein to support their stand that the activity carried out by them does not amount to manufacture, for the reason that in the Ammonia Supply Co.'s case cited supra, the Tribunal held that filling of liquid ammonia from tankers into smaller cylinders does not amount to manufacture while in the present case, not only did the applicants undertake labelling but also packed from tankers (bulk pack) into retail pack thereby prima facie satisfying the ingredients of Note 4 to Chapter 15. In these circumstances, no strong prima facie case for total waiver has been made out. We, therefore, direct pre-deposit of Rs. 1,00,000/- (Rupees one lakh only) towards duty within a period of eight weeks from today and on such deposit, pre-deposit of balance duty and penalty shall stand waived and recovery thereof stayed pending the appeal. Failure to comply with this direction shall result in vacation of stay and dismissal of appeal without prior notice.
3. Compliance is to be reported on 26.6.2006.
(Pronounced in Court)