Customs, Excise and Gold Tribunal - Mumbai
Viral Filaments Ltd. vs Commissioner Of C. Ex. & Cus., Vadodara on 4 February, 2002
Equivalent citations: 2002(80)ECC202, 2002(142)ELT101(TRI-MUMBAI)
ORDER Gowri Shankar, Member (T)
1. Duty totalling Rs. 25.25 lakhs approx. has been demanded from the assessee in the two orders impugned in these appeals in which these stay application have been filed. Penalty totalling Rs. 5.20 lakes have also been imposed. The Commissioner finds that the assessee was not entitled to pay duty on the final product that it manufactured when they were exempted unconditionally by a notification. Therefore its act of taking credit on the inputs used in the manufacture was contrary to law.
2. In its decision in Everest Converters v. CCE, 1995 (80) E.L.T. 91 which has been followed in number of decisions, the Tribunal had held that notwithstanding the fact that the goods were exempted, the manufacturer was entitled to pay duty on them if he wish to and that he could then take Modvat credit of the duty paid on the inputs used in the manufacture of the finished products. Since the issue is prima facie covered by this decision, we waive deposit of the duty demanded and penalty imposed and stay their recovery.
3. We have taken note of the departmental representative's contention that the decision of the Tribunal in Everest Converters requires reconsideration and his consequent request for the appeals to be heard out of turn, particularly since the issue is recurring. We therefore list these appeals for hearing on 18-3-2002.