Customs, Excise and Gold Tribunal - Tamil Nadu
Texmo Industries vs Cce on 7 March, 2005
Equivalent citations: 2005(100)ECC418
ORDER V.K. Agrawal, Member (T)
1. This is an application by M/s. Texmo Industries for waiver of pre-deposit of central excise duty of Rs. 98,59,015. Shri R. Raghavan, learned Advocate submitted that the Commissioner (Appeals) has dismissed their appeal for non-compliance with the provisions of Section 35F of the Central Excise Act that the Commissioner (Appeals) who had directed them to deposit the entire amount of duty; that they had filed a modification application in view of the issue involved in the appeal having been decided favourably by the Tribunal in the case of Mather & Platt (I) Ltd. v. CCE, Pune F.O. No. A/326/WZB/04 C-I dated 20.4.04, that the Commissioner has rejected their modification application on the ground that they are not eligible to file the modification application.
2. We also heard Shri A. Jayachandran, learned JDR, who submitted that as the appeal has been dismissed by the Commissioner (Appeals) for non-compliance and they should be directed to deposit the entire amount.
3. We have considered the submissions of both the sides. Applicants are the manufacturer of power driven pumps and during the manufacturing process they assemble 6 components together and a product known as "Thrust bearing assembly" comes into existence. The department wants to classify the same as bearing under heading 84.82 of the Schedule to the CE Tariff Act.
4. We observe that West regional Bench of the Tribunal in the case of Mather & Platt (I) Ltd. v. CCE, Pune P.O. No. A/326/WZB/04 C-I dated 20.4.04, has held that the "Thrust bearing assembly" is not classifiable under heading 84.82. In view of this fact, the appellants have made out a strong prima facie case. However, as their appeal was dismissed for non-compliance, we direct the applicants to deposit Rs. 5.00 lakhs by 31.3.2005, and report compliance to the Commissioner (Appeals), whom the matter is being remanded to decide the matter on merits.
5. They will submit the compliance the Commissioner (Appeals) on 4.4.2005. As the appellants have been directed to deposit a sum of Rs. 5 lakhs and subject to compliance, the Commissioner (Appeals) will hear their appeal on merits. The appeal is allowed by way of remand.