Oscar Equipments Private Limited Vs. Commr. of Central Excise - Court Judgment |
| Customs Excise and Service Tax Appellate Tribunal CESTAT Calcutta |
| Dec-05-2007 |
| S T Chittaranjan, D Panda |
| Oscar Equipments Private Limited |
| Commr. of Central Excise |
1. heard both sides. the appellants have not maintained separate account for inputs used in the exempted goods leading to the present demand. however, they have reversed the proportionate credit of rs. 94,000/- on 31.3.99 and 13.8.99 prior to clearance of the exempted goods. shri s.p. ghosh, ld. consultant appearing for the appellants states that in view of the hon'ble supreme court's decision in the case of chandrapur magnet wires pvt. ltd. v. collector of central excise, nagpur , reversal of credit should be taken to mean that the appellants have not availed the credit. on the basis of the ration of the cited decision, we are satisfied that the appellants have a prima-facie case in their favour. hence, we waive the requirement of predeposit.2. since the appeal was dismissed by the lower appellate authority on the ground of non-compliance with the direction to predeposit, we set aside the impugned order and remand the matter to the lower appellate authority for fresh decision on merit, who shall afford a reasonable opportunity of hearing to the appellants before passing a fresh order.the appeal is allowed by way of remand. stay petition also gets disposed of.
1. Heard both sides. The appellants have not maintained separate account for inputs used in the exempted goods leading to the present demand. However, they have reversed the proportionate credit of Rs. 94,000/- on 31.3.99 and 13.8.99 prior to clearance of the exempted goods. Shri S.P. Ghosh, ld. Consultant appearing for the appellants states that in view of the Hon'ble Supreme Court's decision in the case of Chandrapur Magnet Wires Pvt. Ltd. v. Collector of Central Excise, Nagpur , reversal of credit should be taken to mean that the appellants have not availed the credit. On the basis of the ration of the cited decision, we are satisfied that the appellants have a prima-facie case in their favour. Hence, we waive the requirement of predeposit.
2. Since the appeal was dismissed by the lower appellate authority on the ground of non-compliance with the direction to predeposit, we set aside the impugned order and remand the matter to the lower appellate authority for fresh decision on merit, who shall afford a reasonable opportunity of hearing to the appellants before passing a fresh order.
The appeal is allowed by way of remand. Stay petition also gets disposed of.