Customs, Excise and Gold Tribunal - Delhi
M/S. Universal Electrodes P. Ltd. vs Commissioner Of Central Excise, Indore on 17 April, 2001
Equivalent citations: 2001(75)ECC624
ORDER
Jyoti Balasundaram
1. Arguing on the above applications for waiver of predeposit of duty of Rs.4,67,506/-confirmed as a result of inclusion of cost of wooden boxes in the assessable value of welding electrodes manufactured and cleared by the applicants between 29.1.90 and 30.9.95, learned Counsel, Shri P.K. Sahu submits that the goods are normally cleared from the factory gate in card board cartons but in polythene bags and wooden boxes were used only in stray cases for the purpose of easy transporting and, therefore, wooden boxes are secondary packing, the cost of which is not includible in the assessable value as per various decisions oft eh Apex Court and the Tribunal including Geep Industrial Syndicate vs. CCE reported in 1997 (90) ELT 271 and Racold Electrical Appliances Ltd. vs. CCE reported in 2000 (122) ELT 144.He, therefore, prays that predeposit may be waived and its recovery stayed pending the appeals. The prayer is opposed by the learned DR, Shri S.K. Das who contends that in the face of the categoric factual finding that the goods were generally cleared from the factory gate in wooden boxes although there was stray sales of goods in card board cartons, the cost of such packing is required to be included in the assessable value and the demand has been rightly confirmed.
2. We have carefully considered the rival submissions. Prima-facie the applicants have not been able to rebut the finding of the authorities below that their normal practice was to clear the goods in wooden cases. Therefore, the applicants have not succeeded in making out a strong prima-facie case for waiver on merits. However, having regard to the fact that the show cause notice dated 9.4.91 for the period 29.1.90 to 31.3.90 is entirely beyond the period of six months from the relevant date, and having further regard to the fact that the remaining 4 show cause notices are partly barred by limitation and having further regard to the financial position of the applicants, we direct predeposit of Rs.2.5 lakhs within a period of 8 weeks from today. On such deposit, predeposit of balance duty shall stand dispensed with and its recovery stayed pending the appeals. Failure to comply with this direction shall result in vacation of stay and dismissal of appeals without further notice.
3. Compliance to be reported on 25.6.2001 (Dictated in open court)