Excel Control Linkages Pvt. Ltd. Vs. Commissioner of C. Ex. and Cus. - Court Judgment

Excerpt:
1. heard both sides. this application is filed in an appeal against order in appeal no. svs/66/ngp/1/2005, dated 24-2-2005 by the said orders. revenue had demanded duty of rs. 43,41,250/- under section 11a(1) and penalty of rs. 37,11,894/- under section 11ac and rs. 6,29,356/- under rule 25 of the central excise (2) rules 2001 along with interest under section 11ab of the central excise act, 1944.2. the dispute is regarding denial of ssi benefit of goods manufactured out of components bearing marking "cable kraft" no brand name is affixed by this manufacturer and the applicants claim the benefit & reply on various decisions of this tribunal & clarification by cbec circular no. 509/5/2000/cx, dated 18-1-2000 and claim that the issue is covered in their favour.3. they also plead financially stringency and circumstances and the pre-deposit required under section 35f would cause undue hardship.4. there is no doubt with the brand name "cable kraft" is of m/s.tuthill controls ltd. uk and hence the decisions in the case of telering v. cce, bangalore 2001 (138) e.l.t. 585 (tri.-delhi) & link locks pvt. ltd. & lms foundry pvt. ltd. 509/5/2000/cx, dated 18-1-2000 herein it is clarified that ssi benefit cannot be denied when inputs are supplied with the brand names and the fact that the department was informed by a letter dated 5-7-2000 about applications having been made to trade mark registry for registration of the alleged impugned brand name. therefore present notice dated 1-1-2002 demanding duties for the period october, 1996 to june, 2001 appears to be prima facie barred by limitation. in this view of the matter full waiver of the pre-deposit and stay should be called for pending the regular hearing of the appeal. application disposed in above terms.

Judgment:
1. Heard both sides. This application is filed in an appeal against order in Appeal No. SVS/66/NGP/1/2005, dated 24-2-2005 by the said orders. Revenue had demanded duty of Rs. 43,41,250/- under Section 11A(1) and penalty of Rs. 37,11,894/- under Section 11AC and Rs. 6,29,356/- under Rule 25 of the Central Excise (2) Rules 2001 along with interest under Section 11AB of the Central Excise Act, 1944.

2. The dispute is regarding denial of SSI benefit of goods manufactured out of components bearing marking "CABLE KRAFT" no brand name is affixed by this manufacturer and the applicants claim the benefit & reply on various decisions of this Tribunal & clarification by CBEC Circular No. 509/5/2000/CX, dated 18-1-2000 and claim that the issue is covered in their favour.

3. They also plead financially stringency and circumstances and the pre-deposit required under Section 35F would cause undue hardship.

4. There is no doubt with the brand name "CABLE KRAFT" is of M/s.

Tuthill Controls Ltd. UK and hence the decisions in the case of Telering v. CCE, Bangalore 2001 (138) E.L.T. 585 (Tri.-Delhi) & Link Locks Pvt. Ltd. & LMS Foundry Pvt. Ltd. 509/5/2000/CX, dated 18-1-2000 herein it is clarified that SSI benefit cannot be denied when inputs are supplied with the brand names and the fact that the department was informed by a letter dated 5-7-2000 about applications having been made to Trade Mark Registry for registration of the alleged impugned brand name. Therefore present notice dated 1-1-2002 demanding duties for the period October, 1996 to June, 2001 appears to be prima facie barred by limitation. In this view of the matter full waiver of the pre-deposit and stay should be called for pending the regular hearing of the appeal. Application disposed in above terms.