Customs, Excise and Gold Tribunal - Tamil Nadu
Sai Lakshmi Industries Ltd. vs Commr. Of Cus. And C. Ex. on 27 September, 1999
Equivalent citations: 2001(131)ELT418(TRI-CHENNAI)
ORDER S.L. Peeran, Member (J)
1. By this stay application, applicant is seeking waiver of pre-deposit of Rs. 1,85,373/- as against total confirmation of penalty of Rs. 3,75,373/-.
2. Appellants contend that they have already pre-deposited Rs. 1.90 lakhs as against impugned order passed by the Commissioner.
3. Ld. Counsel gives a copy of challan showing details which is verified by the Ld. DR. It is his contention that the issue is pertaining to nongrant of benefit of Notification No. 8/97 read with 4/97 in respect of clearances of goods to the Domestic Area in respect of 100% EOUs. He contends that there is Board's Circular No. 442/8/99-CX in F.No. 268/36/98-CX. 8, dated 4-3-1999 clarifying that benefit of Notification No. 8/97-C.E., dated 1-3-1997 may be allowed to units importing as well as indigenously procuring raw materials provided the unit is able to satisfy the jurisdictional Central Excise Authorities beyond doubt that inputs used in the manufacture of goods to be sold in DTA are manufactured of indigenous raw materials only by way of maintenance of records/physical scrutiny/verification and the manufacturing process, etc. Ld. Counsel submits that they could not produce this Board's circular before both the authorities and that there is no dispute with regard to points raised in the Board's circular; that Board's circular clearly applies to the facts of this case and seeks that matter itself could be remanded to original authority to consider this Board's circular. He submits that this benefit has been given in Cochin Collectorate and produces a copy of one order-in-original passed by the Dy. Commissioner in Order No. S31/248/98-Pr. Cus., dated 8-4-99.
4. Heard Ld DR who reiterates the departmental contention.
5. On a careful consideration of the submissions, we notice that appellants have already pre-deposited Rs 1,90,000/- out of total demand of Rs. 3,75,373/-. Therefore, the prayer for waiver of pre-deposit of Rs. 1,85,373 and stay of its recovery is granted. As the issue lies in a short compass, the appeal itself is taken up for disposal, it is seen that both the authorities have not granted benefit of notifications in issue. While disposing of the matter both the authorities have not taken into consideration the Board's Circular No. 442/8/99-CX in F.No. 268/36/98-CX, dated 4-3-1999 which has clarified that notifications will be applicable to units importing as well as indigenously procuring raw materials, provided the unit is able to satisfy the jurisdictional Central Excise Authorities beyond doubt that inputs used in the manufacture of goods to be sold in DTA are manufactured out of indigenous raw materials only by way of maintenance of records/physical scrutiny/verification and the manufacturing process, etc. This aspect of the matter is required to be scrutinized and looked into by the original authorities Therefore, we are of the considered opinion that the matter can go back to the original authority for de novo consideration to consider the Board's circular supra and re-adjudicate the matter after giving an opportunity of hearing to appellants. Thus the appeal is allowed by way of remand to the original authority.