Customs, Excise and Gold Tribunal - Tamil Nadu
Sree Nirmal Spinners vs Commissioner Of Central Excise on 27 October, 2004
Equivalent citations: 2005(179)ELT256(TRI-CHENNAI)
ORDER P.G. Chacko, Member (J)
1. There is a demand of duty of Rs. 2,22,464/- on the appellants on the basis of clubbing of clearances of the appellants (Sree Nirmal Spinners) with those of Sree Narayana Spinners. There is also a penalty of Rs. 60,000/- on the appellants. Ld. Counsel for the appellants prays for waiver of pre-deposit and stay of recovery in respect of these amounts, claiming strong prima facie case. His claim is based on the fact that the appellants and M/s. Sree Narayana Spinners were recognized as separate manufacturing units by the department by issuing separate registration certificates to them. It is argued that, in view of this fact, the finding of the original authority that the appellants and Sree Narayana Spinners were existing "only on paper" cannot be sustained. We have heard Id. DR also, who has argued in defence of the orders of the original authority and the first appellate authority.
2. The Counsel's argument is prima facie valid. We find, in the order of the original authority that separate registrations were given to Sree Nirmal Spinners and Sree Naryana Spinners by the department. There is nothing on record to indicate that the registration given to Sree Narayana Spinners was cancelled at any point of time. After considering these aspects, we grant waiver of pre-deposit and stay of recovery in respect of the duty and penalty amounts.