Customs, Excise and Gold Tribunal - Mumbai
Shreeram Engg. Works, Megha Engg. ... vs Commissioner Of Central Excise Mumbai ... on 11 May, 2001
ORDER
G.N. Srinivasan, Member (Judicial)
1. This bunch of applications have been filed for waiver of duty and penalties as mentioned below. Appellant Shreeram Engg. Works has filed application for waiver of duty of Rs. 122,10,468 and penalty of equivalent amount imposed under Section 11AC. Appellant Megha Engg. Corporation has filed application for waiver of penalty of Rs. 20,000. Appellant Mefco has filed application for waiver of penalty of Rs. 30,000/- Appellant T.R. Musale has filed application for waiver of penalty of Rs. 50,000/- being a partner of Mefco and it is held that he has master minded the entire operation. Deepali T. Musale and Shilpa T. Musale has filed applications for waiver of penalty of Rs. 5000 imposed on them.
2. Appellants Shreeram Engg. Works, Megha Engg. Corporation and Mefco have filed declarations under notification 13/92 as amended by 1/93 with the authorities mentioning the address as 247, Opp. Sachinan Majiwalada Rd., Thane declaring that they are producing goods under Chapter Heading 84. It is the case of the department that they were manufacturing certain goods for Voltas Ltd. The charge against them was that the appellant T.R. Musale looked after the entire works of the units and the production of all the three units have been clubbed denying the exemption claim under notification 1/93. The case of the department was that the goods produced by these three appellants come within the notification 75/87 and therefore they were not entitled to the benefit of notification 1/93. On the basis of the evidence called out during the investigation namely statements of various persons including the lorry driver the adjudicating authority had come to this conclusion. The appellate authority on the basis of the facts submitted before him confirmed the order of the adjudicating authority. Hence the appeal and the application.
3. The Ld. Counsel for the appellant states that on the basis of the trade notice 78/86 the goods will come under general engineering item namely chapter heading 7308. The goods produced are nothing but base stand frame. It is also contended by the Ld. Counsel for the appellants that the department has wrongly denied the exemption claimed under 1/93. During the course of the hearing, when the bench put up the question as to the financial status of the parties, he considered that no plea has been made as to the financial status or the difficulties confronted by the applicants. After hearing the Ld. DR we are of the view that prima facie in the declaration when the applicant themselves have claimed that the goods manufactured by them fall under chapter 84, how could the party claim benefit of trade notice? We are prima facie of the view that the orders passed by the lower authorities are correct as the conclusion have been drawn by them on the basis of the evidence available on record. We are therefore of the view that the appellant has to pay the amount of duty demanded. Taking note of the difficulties submitted by the counsel for the appellant, out of the demand of duty of Rs. 12 lakhs approx. we direct the appellant Shreeram Engg. Works to deposit a sum of Rs. 4 lakhs within two months from the receipt of this order. On such deposit the payment of remainder sums demanded from Shreeram Engg. Works as well as the penalties imposed on other appellants are waived and stay their recovery.
4. Compliance on 20.8.2001.