Customs, Excise and Gold Tribunal - Mumbai
Sharma Metal Rolling Mills vs Collector Of Customs And Cen. Excise on 10 June, 1993
Equivalent citations: 1993(47)ECR540(TRI.-MUMBAI)
ORDER R. Jayaraman, Member (T)
1. For hearing the applicants' appeal on merits, they arc required to deposit a sum of Rs. 96,556 towards duy.
2. Shri Parikh, the Ld. advocate, appearing for the applicants, pleaded that there arc two issues involved-one relates to taking of modvat credit at a rate more than Rs. 500 per M. Ton by adding special excise duty element. The other issue is denial of actual credit of duty taken as per the Gate Passes by applying proviso 3 to the notification No. 177/86. The restriction in modvat credit to Rs. 500 as per the aforesaid proviso could be applied, during the material period, only to inputs classifiable under Tariff heading 72.15 and 73.09. In their case, the inputs received were classified under heading 72.30 and 73.27. Only subsequently by a Notification No. 23/91 dated 27.7.1991, the aforesaid tariff headings were substituted as 72.30 and 73.27.
3. Shri Singh, however, contended that even during the material period, the inputs were mis-classified.
4. Shri Parikh also pleaded financial hardship on account of power shut down and non-functioning of the factory.
5. After hearing both the sides, we find that the issue is debatable in regard availment of credit in excess of Rs. 500/- per M.T. We, therefore, direct the applicants to deposit a sum of Rs. 10,000/- (Rupees ten thousand only) in cash and furnish Bank Guarantee for another sum of Rs. 45,000/- within a period of twelve weeks from the date of communication of this order and reporting compliance within thirteen weeks, failing which their appeal is liable to be dismissed. On compliance with the direction, there shall be stay and waiver of recovery of the balance of duty amount.
Pronounced in the open court.