M/S. Punjab Woolcombers Ltd. Vs. Commissioner of Central Excise, - Court Judgment

Excerpt:

.....the contention of the applicants is that in respect of s.o. dyes at the time of registration they filed declaration which was duly received by the revenue and later on, this was incorporated in their registration certificate. their contention is that requirement under central excise rules is that the dealer should be registered, it is only the trade notice issued by the chandigarh collectorate which says that their must be declaration by the dealer in respect of the item. the applicants also pleaded financial hardship of the items. the applicants also pleaded financial hardship and they had approached the board of industrial and financial re-construction for declaring the unit as sick.4. as the dealers who issued t he invoices were duly registered with the revenue department, only dispute is in respect of the items declared in their declaration. therefore, prima facie, balance of convenience is in favour of the applicants. hence the pre-deposit of duty and penalty is waived for hearing of the appeal. to come up for arguments on 6.3.2001.

Judgment:

1. The applicants filed this application for waiver of pre-deposit of Rs.1,29,664/- and penalty of Rs.30,000/-.

3. The contention of the appellants is that the benefit of MODVAT credit was denied to the applicants on the ground that dealers were registered with the Revenue Department but in their declaration, they had not mentioned the item S.O. Dyes and OSAA. The contention of the applicants is that in respect of S.O. Dyes at the time of registration they filed declaration which was duly received by the Revenue and later on, this was incorporated in their registration certificate. Their contention is that requirement under Central Excise Rules is that the dealer should be registered, it is only the Trade notice issued by the Chandigarh Collectorate which says that their must be declaration by the dealer in respect of the item. The applicants also pleaded financial hardship of the items. The applicants also pleaded financial hardship and they had approached the Board of Industrial and Financial Re-construction for declaring the Unit as sick.

4. As the dealers who issued t he invoices were duly registered with the Revenue Department, only dispute is in respect of the items declared in their declaration. Therefore, prima facie, balance of convenience is in favour of the applicants. Hence the pre-deposit of duty and penalty is waived for hearing of the appeal. To come up for arguments on 6.3.2001.