Eupharma Laboratories Ltd. Vs. Commissioner of C. Ex.

1. applications are for waiver of deposit of penalty of rs. 6.28 lakhs under rule 57-i(4) and penalties of rs. 50,000/- each on shri r.v. shah and c.a. shenoy, chairman, managing director and chief executive of the assessees.3. the penalties have been imposed following the finding that modvat credit of duty paid on inputs which were used in the manufacture of pharmaceutical products cleared without payment of duty. it is stated that the credit in question was reversed on the wrong utilisation being pointed out by the department. the fact of its reversal is not questioned. the period when credit was utilised is october 1992 to september 1993. notice has been issued on 24-6-1997. prima facie the decision of this tribunal in maruti udyog ltd. v. cce - 1998 (25) rlt 246 and others that the provisions of section 11a will not apply in cases of evasion of duty prior to its being incorporated in the statute would apply to the provisions of rule 57-i(4) with which it corresponds. while the question of penalty under rule 209a is arguable, we take note of the fact of deposit of credit duty. we, therefore, waive deposit of penalties and stay recovery.