Mumbai Court December 2001 Judgments

Subramani Steel Pvt. Ltd. Vs. Commissioner of Customs and

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

1. The Stay Application and Appeal is taken up for final disposal after condoning the delay, waiver of pre-deposit and with the consent of both sides.2. The appeal is against the order of Commissioner (Appeals) who has rejected the appeal as his order of pre-deposit under Section 35F of the Central Excise Act, 1944 was not complied with. The learned Consultant submits that the order of pre-deposit of Rs. 2,19,000/- was never received by the appellant and notice for the hearing for the final dismissal order was also not received.3. After hearing both sides, I find that the appellants have not received the original order for pre-deposit of Rs. 2,19,000/- and the Commissioner (Appeals) has dismissed the appeal only on the question of non-compliance with the order of pre-deposit and has not dealt with the appeal on merits. Such orders have not been appreciated by the Tribunal. I would therefore consider, setting aside the order and remanding the matter back to the learned Commissioner (Ap...

Gujarat Composite Ltd. Vs. Commissioner of Customs and

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

Reported in: (2002)(80)ECC415

1. When the matter was called the registry placed before me a letter, stating that the issue may be decided on merits as the appellant do not want to be heard in person. Another letter indicated, that the duty amount of modvat credit as directed has already been deposited by TR-6 challans dated 20/12/1999 and 27/04/2001 received in the bank on 29/12/1999 and 30/04/2000 respectively. With the consent of DR's side, the appeal is taken up for disposal.2. From the record, I find that the Commissioner (Appeals) has denied credit on 57E(5) certificate issued by the proper officer, only on the ground that no certificate had been produced by the appellant of the supplier of the goods to co-relate the goods to the AR-4, to establish identity of the goods and its proper accounting by M/s. L&T, inasmuch as whether the goods supplied by them were in fact out of the AR-4 from which the diversion for home consumption was made. He also observed that M/s. L&T has not recovered duty from appel...

Suresh G. Kewalramani Vs. Commissioner of Customs, Kandla

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

1. The application is for waiver of deposit of penalty of Rs. 5 lakhs imposed on the applicant, in his capacity as managing director of Jaisu Shipping Company Pvt. Ltd., Kandla. In his order, the Commissioner finds that the company attempted to evade payment of duty due on a consignment of paint and thinners, which it imported from Singapore with the object of using it as ship's store for painting a supply ship belonging to the applicant, which was declared to be a foreign going vessel. The Commissioner finds that the supply vessel was in fact not a foreign going vessel and also finds that two invoices of the same date showing different values for these goods were kept in readiness.2. The first contention of the counsel for the applicant that the craft is in fact a foreign going vessel. The claim that it occasionally went into international waters to supply fuel and fresh water to ships anchored by them, is not supported by any evidence. The second contention that no documents have be...

National Flask Industries Ltd. Vs. Commissioner of Customs and

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

Reported in: (2002)(81)ECC495

1. This stay application is against the order of the lower authorities who have determined that an amount of Rs. 3,45,347/- availed as modvat credit was not eligible as the appellant said to have lost the documents even though they have received the goods in their factory.2. I have heard both sides and find that the learned Chartered Accountant for the appellant have submitted before me that they had not made any application for condoning the loss of documents and eligibility of credit on re-constructed documents to the proper officer. Prima facie, if the applicant, who are permitted to make such application, have not made the application was not eligible for the grant of credit. They should be put to certain terms of pre-deposit before their appeal is heard. I would consider a pre-deposit of Rs. 2 lakhs to be adequate in the facts and circumstances of this case. The same should be deposited within a period of 5 weeks and compliance thereof to be reported on 11/01/2002 and on such com...

Commissioner of Customs and Vs. Cbs Gramophone Records and Tape (i)

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

Reported in: (2002)(149)ELT749Tri(Mum.)bai

1. This appeal is against the order of the Collector (Appeals) who had allowed modvat credit on lacquers used in the manufacture of gramophone records. The Collector (Appeals) has come to the following finding after examining the process of manufacture and use of the entities in dispute. (a) "In my view the lacquers do qualify as an input for the purpose of modvat credit, in as much the process done on the lacquers are indispensable in the manufacture of Gramophone Records. In this connection a reference to the decision of Cegat SRB in the case of Mettur Chemical and Industrial Corporation Ltd. v. Collector of Central Excise, Coimbatore 54. It was held by the Hon'ble Tribunal 'with a view to draw line as to what constitutes the input in or in relation to the manufacture of a product, it can be safely held that the process which are indispensable to the emergence of the final product and which are inextricably linked up with the production stream of the end product up the stage of its ...

Crompton Greaves Ltd. Vs. C.C. Ex., Mumbai

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

1. The duty of Rs. 1.99 crores has been demanded and penalty of Rs. 2 lakhs imposed on the assessee, on the ground that the copper winding wires that it manufactured are not entitled to the exemption contained in entry 84.1 of the Table to the notification 8/96.2. The counsel for the applicant says that it imports copper rods which it gives to a job worker for drawing into winding wires. It receives the winding wire in its factory and sends it to another job worker for winding it on to stators. It receives the stators and uses them inter alia in the manufacture of power driven pumps. The notification, which exempts goods other than those specified therein which includes winding wires would not apply for two reasons. The winding wires are exempted from duty and the applicant did not manufacture winding wires.3. While the departmental representative relies on the Commissioner's order, we find a strong prima facie case for the applicant. The Commissioner prima facie has misread the exemp...

Teksons Ltd. Vs. Commissioner of Central Excise,

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

Reported in: (2002)(80)ECC189

1. This appeal is against a de nova proceeding initiated and confirmed by the Commissioner. The allegations confirmed against the appellant are: a) In respect of inputs removed from the factory for job work which have not been properly accounted for by way of receipt and utilisation in the manufacture of the final product without following the proper procedures under Rule 57F(2) amounting to Rs. 7,79,670/-. b) In respect of rejected and returned goods which were not used as inputs amounting to Rs. 14,561/-. c) In respect of inputs without filing modvat declaration under Rule 57G amounting to Rs. 6,422/- d) Penalty under Rule 173Q and Rule 9(2) of the Central Excise Rules, 1944.2. After hearing both sides and considering the material on record and the submissions made before me, I find: i) Certificates from the Chartered Accountant as regards the receipt of the goods removed under Rule 57F(2) for job working to M/s. Indian Smelting & Refining Co. Ltd. and others have been produced ...

Hindustan Fasteners Pvt. Ltd. Vs. Commissioner of Customs and

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

1. The application is for wavier of pre-deposit of duty of Rs. 65,998/-.2. The applicant is a manufacturer of bolts. It manufactured these out of the wire. The wire is sent for the manufactures to job workers, who fabricate unthreaded bolts and these are sent to the applicant's premises for threading and finishing. In the order impugned in the appeal, the Commissioner (Appeals) finds that applicant took modvat credit of duty paid on wires which were sent to the job worker which cannot be established having been utilised in the manufacture of unthreaded articles which the applicant received because the invoices under which the job worker received the wire were not in the applicant's name.3. The representative of the applicant does not deny the correctness of these facts but say that duplicate invoices were in its possession for these goods. However, this plea having raised for the first time before me, not having been raised either of these two lower authorities, I am unable to accept ...

New Chemi Industries Ltd. Vs. Commissioner of Central Excise,

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

1. This stay application is for the order or recovery of modvat credit of Rs. 1,32,859/- and penalty of Rs. 14,000/- imposed as the lower authorities did not accept the application for condoning the loss of document on which credit was eligible.2. After hearing the learned advocate for the appellant and the DR, I find, that the appellant have deposited the entire amount of modvat credit which was the subject matter of this appeal. The penalty of Rs. 14,000/- is only contesting. In that view of the matter and since prima facie I find the appellant have a good case on merits for eligibility for the credit I would order stay of the recovery of the entire amount of penalty now contesting pending the final disposal of this appeal....

B.B. Crowns Pvt. Ltd. Vs. Commissioner of Customs and

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

1. The stay application and appeal is taken up for final disposal after condoning the delay in filing the appeal and with the consent of Revenue after waiver of Predeposit, as (SIC) involved is settled the appellants had sent a letter that they cannot attend the hearing being unwell.2. From the records I find that the Commissioner (Appeals) has rejected the appeal for non-compliance of the directions for pre-deposit issued by him. I find that such denial of substantive rights of appeal, without going into merits of the case have not been appreciated by the Tribunal. The appellants were directed to deposit Rs. 25,000/- as a pre-deposit in this case and the same was not possible to be complied with. The financial hardship problems being faced by the appellants unit, as urged in the paper book, induce me to set aside this order of the Commissioner (Appeals) including the direction of pre-deposit of Rs. 25,000/- which is almost the entire amount of the disputed modvat credit and remit the...