Customs, Excise and Gold Tribunal - Delhi
M/S. Electrolux Kelvinator Ltd. vs C.C.E., Jaipur on 20 February, 2001
ORDER K.K. Bhatia, Member (T)
1. The facts in this case are that the appellants had imported 14 sets of iron moulds and availed modvat credit of Rs. 2,17,084/- in respect of the CVD paid on them. They sent these moulds for job worker - M/s. Perfect Job Work, Delhi in terms of Rule 57A(3) of the Central Excise Rules, 1944 under their challan No. 30/20.6.94. The Central Excise Officers visited their premises on 24/25.11.94 and found that the said moulds had not yet been received back from the job worker. Accordingly, the proceedings were initiated against the appellants and the Joint Commissioner (Technical), Jaipur vide his Order dt. 23.9.99 disallowed the modvat credit of the aforestated amount to the party under Rule 57U. Since the party had paid the amount through their modvat credit account on 21.5.96, he ordered for the appropriation of the same against the aforestated confirmation. He further imposed a penalty of Rs. 2,17,084/- under Rule 57U(6) and another amount of penalty of Rs. 50,000/- under Rule 173Q on the party.
2. The appellants filed an appeal and the Commissioner (Appeals), Jaipur vide his Order dt. 15.9.2000 set aside the penalty of Rs. 2,17,084/- but upheld the penalty of Rs. 50,000/- imposed on the party.
3. The present appeal is against the penalty of Rs. 50,000/- imposed on the party by the original authority and upheld by the lower appellate authority. Shri K.K. Anand, Advocate for the appellants submits that they are not contesting the disallowance of the modvat credit of Rs. 2,17,084/-. It is contended that since the party has voluntarily reversed the modvat credit, there is no ground for imposition of penalty on them. Shri S.C. Pushkarna, JDR for the respondents reiterates the findings arrived at by both the lower authorities.
4. I have considered the submissions made by both the sided. The matter today is listed for hearing the Stay Petiton filed by the party. As already stated, the amount of the modvat credit ordered to be reversed is not contested and in fact the same has already been reversed by the appellants. In view of this therefore, I order the appellants to make a deposit of Rs. 25,000/- (Rs. Twenty five thousand) on or before 16th April, 2001. On making such deposit, balance of the amount of penalty shall stand waived and its recovery stayed till the disposal of this appeal.
5. The matter will be called for for reporting compliance on 18.4.2001.
(Announced and dictated in the Court)