Customs, Excise and Gold Tribunal - Calcutta
M/S. Eastern Steel Industries vs C.C.E., Calcutta-Ii on 19 June, 2001
ORDER
Archana Wadhwa
1. The prayer in the application is for dispensing with the condition of predeposit of duty amount of Rs. 69,143.00 (Rupees sixty nine thousand one hundred forty three only) confirmed by the authorities below for disallowing the Modvat credit availed by the appellants on the basis of bill issued by M/s Eastern Steel Industries and personal penalty of Rs. 5,000.00 (Rupees five thousand only) imposed upon them.
2. After hearing both sides I find that M/s United Commercial Supply Co. has purchased inputs from S.A.I.L. prior to 1.4.94 and subsequently supplied the same to M/s Eastern Steel Industries and raised the bills. The appellants availed Modvat Credit on the basis of these bills. The appellant's contention is that the invoices issued by the SAIL show the duty paid character of the goods. However it is seen that the bills are not prescribed modvatable documents and as per the Larger Bench decision of the Tribunal in the case of Bamalawrie Co. Ltd. reported in 2000 (116) ELT 364 (T), the invoice issued by the original manufacturer cannot be endorsed. Inasmuch as there is no other document in the possession of the appellants, on the basis of which Modvat credit can be availed by them, I do not find any 'prima facie' case in favour of the appellants so as to allow the Stay Petition unconditionally. No merits are found in the learned Advocate's arguments that the production of duty paying document is a procedural requirement inasmuch as the same is mandatory requirement of law. Accordingly, I direct the applicants/appellants to deposit the entire amount of duty within period of six weeks from today. Subject to deposit of the above amount, the amount of penalty stands waived and its recovery stayed during the pendency of the appeal. Matter to come up for ascertaining compliance and for disposal of the appeal on 6th August, 2001.
(Dictated & pronounced in Court)