Punsumi Foils and Components Ltd. Vs. Commissioner of Central Excise - Court Judgment

Excerpt:

.....of the product manufactured by it as it was permitted to imports capital goods and raw material without payment of duty to be used for the manufacture of the finished goods. he submits that the development commissioner has cancelled their lop/loi and that the applicant has requested for reconsideration of the decision. he submits that the department has confiscated goods worth of rs. 2,64,45,943/-and the goods are still with customs. he submits that since over a large amount of goods customs have still control pre-deposit of duty and penalty may be waived.3. shri rajeev tandon, learned sdr appearing for revenue submits that a huge amount of duty is due from the appellant and that the goods might have depreciated inasmuch as capital goods were imported sufficiently long back and that the depreciated value has not been taken into consideration. he submits that applicant may be directed to deposit at least a part of duty and penalty.4. we have heard the rival submissions. in the instant case we note that goods valued over rs. 2 crores are still with the customs. the amount of duty on the goods is only a little more than rs. 1.0 crore.since substantially valued goods are still.....

Judgment:

1. M/s. Punsumi Foils & Components Ltd. have filed this application for waiver of pre-deposit of duty and penalty along with an appeal.

2. Arguing the case for the applicant Shri Randhir Singh, learned Counsel submits that the applicant is a 100% Export Oriented Unit and was under obligation to export specified quantity of the product manufactured by it as it was permitted to imports capital goods and raw material without payment of duty to be used for the manufacture of the finished goods. He submits that the Development Commissioner has cancelled their LOP/LOI and that the applicant has requested for reconsideration of the decision. He submits that the Department has confiscated goods worth of Rs. 2,64,45,943/-and the goods are still with Customs. He submits that since over a large amount of goods Customs have still control pre-deposit of duty and penalty may be waived.

3. Shri Rajeev Tandon, learned SDR appearing for Revenue submits that a huge amount of duty is due from the appellant and that the goods might have depreciated inasmuch as capital goods were imported sufficiently long back and that the depreciated value has not been taken into consideration. He submits that applicant may be directed to deposit at least a part of duty and penalty.

4. We have heard the rival submissions. In the instant case we note that goods valued over Rs. 2 crores are still with the Customs. The amount of duty on the goods is only a little more than Rs. 1.0 crore.

Since substantially valued goods are still available with the Customs Authorities pre-deposit of duty and penalty-is waived. However, since stakes are very high the matter should be listed for regular hearing on 18-11-2002.