Customs, Excise and Gold Tribunal - Mumbai
Neptune Equipments Pvt. Ltd., Shri M.S. ... vs The Commissioner Of Central Excise on 21 October, 2005
ORDER Archana Wadhwa, Member (J)
1. The application is for dispensing with the condition of pre-deposit of duty amount of Rs. 28,24,881/- confirmed against M/s. Neptune Equipment Pvt Ltd., along with imposition of personal penalty of Rs. 10 lakhs and penalty of Rs. 1 lakh imposed on the second appellants Shri M.S. Shah. The dispute in the present appeal relates to the inclusion of the value of Hot Air Generator and filter, which the appellants have bought from the market and directly dispatched to site in the assessable value of the products manufactured by the appellants.
2. It is seen that the appellants has deposited an amount of Rs. 5 lakhs during investigation, which stands appropriated vide the impugned order. In addition, modvat credit of duties paid on the inputs has also been denied to the appellants on the ground that the same was not the issue. However, we find that in case of subsequent duty demand against an assessee he has to be allowed the benefit of modvat credit of duty paid on the inputs, in terms of the settled law of the issue. The appellants has also pleaded that they are a sick company and are facing financial hardship. After taking all the facts into consideration, we dispense with the condition of pre-deposit of balance amount of duty and the entire amount of penalties imposed upon both the appellants.
(Dictated in Court)