Customs, Excise and Gold Tribunal - Delhi
M/S. Jay Yuhshin Ltd. vs Cce, Delhi on 21 March, 2001
ORDER
P.G. Chacko
1. In this application, the applicants have prayed for complete waiver of pre-deposit of the penalty of Rs.3 lakhs and for stay of recovery thereof, pending the appeal.
2. The penalty to the above extent imposed by adjudicating authorities was confirmed, in the assessee's appeals, by the lower appellate authority under Rule 173Q of the Central Excise Rules read with Section 11AC of the Central Excise Act. The imposition of penalty was occasioned by the applicants having taken credit of duty of Rs.3 lakhs in their PLA Account on 18.11.95, subsequently having debited the same on 24.5.96 and there-after having taken credit of the same in their RG 23A Part II Account on 27.5.96. All these threee dates relating to the cause of action for imposition of penalty are prior to the date on which the provisions of Section 11AC of the Central Excise Act came into force. The lower authorities imposed/confirmed the penalty under Rule 173Q read with Section 11AC, without apportioning the amounts relatable to the Rule under the Section. It has been consistently held by this Tribunal that, in such situations, the penalty cannot be sustained under Section 11AC.
3. In view of the above position, having heard both sides, I find strong prima facie case and, accordingly, grant complete waiver of pre-deposit and stay of recovery in respect of the aforesaid penalty of Rs.3 lakhs. The appeal will arise for regular hearing in the due course.