Customs, Excise and Gold Tribunal - Mumbai
Shalimar Paints Ltd. vs Commissioner Of Central Exicse And ... on 5 July, 2001
ORDER
Gowri Shankar, Member (Technical)
1. The application is for waiver of deposit of duty of Rs. 5,49,796 and penalty imposed of Rs. 1.22 lakhs.
2. I have heard both sides.
3. Duty has been demanded and penalty imposed on two grounds. First, except for Rs. 3400/- duty has been demanded on the ground that there was a shortage on verification of inputs used by the applicant in its manufacture of finished product when compared to the stock on which modvat credit has been taken. The contention of the representative of the applicant is that there is in reality no shortage; the applicant had a practice of making entries for issue of inputs only once in a month. This explained the failure to record entries relating to inputs for the period from 1.12.95 to 21.12.95. He contends that, by taking into account the private records of the applicant, utilisation of these inputs allegedly shout in the manufacture of finished product can be established.
4. The departmental representative disputes the reliability of private record particularly at this stage.
5. The acceptability or otherwise of the applicant's contention would require detail examination and study. It is not possible to accept the contention at this stage straightaway. In the absence to maintain proper accounts of issue, there is prima facie case against the applicant.
6. Taking these facts into account, Rs. 2.5 lakhs deposit towards the duty and penalty within a month from the receipt of this order would be appropriate. Such deposit to be made either by debit to the personal ledger account or RG23A account. On such deposit being made and evidence being shown to the Commissioner (Appeals) within a further period of one month, his order dismissing the appeal before him for failure to deposit Rs. 4 lakhs, as ordered by him, is set aside and the appeal allowed, for the Commissioner (Appeals) to decide it on merits. On the failure of the applicant to comply with this order, the appeal before the Tribunal shall stand dismissed.