Customs, Excise and Gold Tribunal - Calcutta
M/S. Madhva Textile Processors Pvt. ... vs Cce, Calcutta-Iii on 20 April, 2001
ORDER
Shri C.N.N.Nair
1. The appellants are Textile Processors working under compounded levy scheme, under Section 3A of the Central Excise Act. The impugned order had demanded duty of Rs.7.5 lakhs and had imposed on equivalent amount as penalty.
2. When the case came up for hearing before us today, the ld. Counsel representing the appellants pointed out that the duty demand had not been correctly made inasmuch as the appellants claim for rebate on account of closure of the unit during May, 1999, which had been pending with the Department, had not been taken into account. He also points out that in terms of Stay Order, the appellant had already deposited an amount of Rs.3,00,000/-. Ld. Counsel also points out that the delay in the grant of abatement causes un-intended hardship, particularly, to small scale manufacturers. In order to remove this difficulty, the Commissioner of Central Excise, Bombay, had issued trade notice No.42 (MP)CH54/99 dated 14.10.99 (114 ELT 10) instructing that simultaneously with passing order on abatement application, the assessee should be allowed to take credit of the duty amount sanctioned in the PLA.
3. We have heard ld.DR also. There is no dispute that the appellants' abatement application is pending with the Department for a long period. Delay in passing the order on the abatement application places the appellants in a difficult situation. It is obvious that the present demand would have been for a much lesser amount, if abatement application was dealt with promptly. Property requires that claims of assessee are also taken up for consideration while confirming duty demand. The appeal is, therefore, disposed of by way of remand so as to enable the Commissioner to pass a fresh order after deciding the appellant's claim for abatement of duty. During the pendency of the remand proceedings, the appellants shall not be entitled to return of the amount of Rs.3,00,000/- which had been deposited in terms of order of the Stay Order.
Dictated and pronounced in the open Court.