U.P. Instruments Ltd. Vs. Commissioner of Central Excise

1. along with this appeal, application no. e/s/595/99-b was filed praying for dispensing with the condition of pre-deposit of the amount levied by the impugned order. notice was served on the appellant of the posting for hearing of the stay petition. advocate representing the appellant has sent an application stating that he is pre-occupied in preparation and filing of his income tax return and so prayed for adjournment. to say the least, the grounds mentioned by the counsel for adjournment of the application for stay is not at all convincing.2. the appellant is a small scale undertaking belonging to the government of u.p. they inter alia manufacture solar cookers. solar cookers are exempted from payment of duty as per notification no.205/88. appellant manufacture not only solar cookers but also solar cookers with electrical back-up. such cookers have been taken to be outside the purview of notification no. 205/88. accordingly, by the impugned order a sum of rs. 1,35,964/-has been levied as excise duty on 1236 pcs. of solar cookers with electric back-up. a penalty of rs. 1,35,964/- was also imposed on the appellant under section 11 ac of the act.3. it is common case that solar cookers are exempted from payment of duty by virtue of notification no. 205/88. the question whether the solar cooker backed up with electrical energy will be entitled to the benefit of the notification is an arguable point. in such circumstances, since the appellant company is one owned by government of u.p., we exempt the appellant from depositing the amount of duty imposed by the impugned order as a condition precedent for entertaining the appeal. the stay petition is ordered accordingly. post the appeal for final hearing on 4th january, 2000. issue notice.