Customs, Excise and Gold Tribunal - Mumbai
Cewat (India) Processors vs Commissioner Of Central Excise, ... on 25 September, 2001
JUDGMENT Jyoti Balasundaram, Member (J)
1. In this case duty demand of Rs. 24,15,000/- has been confirmed for the period 16.12.1998 to 15.03.1999 and penalty of Rs. One lakh has been imposed upon the applicants on the ground that the applicants used a new stenter machine to process fabrics, in addition to the existing stenter machine. It is the submission of the applicants that the new stenter machine was commissioned only in March, 1999 and could not be used prior to that date in the absence of supply of stenter clips. He further submits that since a sum of Rs. 10 lakhs already stand paid at the time of investigation, no further pre-deposit is called for.
2. The prayer for waiver is opposed by the ld.D.R. who draws the attention of the Bench to the fact that Shri Joseph John Pereia, proprietor of the applicants had stated that the new hot air stenter machine has been installed and fully commissioned by the last week of November, 1998, that the Director of the stenter manufacturing company had stated that the new stenter machine could be operated with stenter clips of any other machine, and that the Astt. Manager, Sales of the stenter manufacturing company had stated that the last consignment of the stenter machine along with all parts except stenter clips was delivered to the applicants in September 1998 and commissioning of the same commenced in October, 1998 and the machine could be used by procuring stenter clips from other suppliers. The ld.D.R. also highlights the aspect of increase in production of fabrics during the period December, 1998 to March, 1999 to buttress his argument that the new stenter machine was operated by the applicants during the period in dispute.
3. On hearing both sides, we are of the view that the issue on merits is debatable having regard to the detailed evidence on the basis of which the adjudicating authority has held the applicants liable to pay duty. However, having regard to the payment of Rs. 10 lakhs during the investigations, we agree that prima facie, no further deposit is called for and hence waive pre-deposit of the balance duty and the penalty and stay recovery thereof pending the appeal.