CHANDAN CHEMICALS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS is an application filed by M/s. Chandan Chemicals for waiver of pre -deposit of penalty of Rs. 10,000/ - imposed on them.

(2.) SHRI R.K. Goel, learned Advocate, submitted that the Applicant is a dealer dealing in chemicals manufactured by M/s. Hindustan Lever Limited and is registered as a dealer under Central Excise Act; that they are issuing both modvatable invoices and non -modvatable invoices for the sale of goods as per the requirements of the buyers and maintaining appropriate records; that they had received a consignment of 15,058 kgs. of Sodium Tripoly Phosphate under 52A invoice from M/s. Hindustan Lever Ltd. and since they intended to sell the entire quantity in retail on non -modvatable invoice the said consignment was not entered in their RG -23D register. He relied upon the Board's Circular No. 96/7/95 -CX., dated 13 -2 -95 wherein it has been mentioned in Para 9(c) that a registered person need not enter in RG -23D register details of those consignment received under Rule 52A invoice or 57G invoice for which he does not propose to issue modvatable invoices. He, therefore, contended that in view of this Circular penalty is not imposable on the Applicants. I also heard Shri S.C. Pushkarna, learned JDR who reiterated the findings of the Commissioner (Appeals).

(3.) IN view the Board's Circular permitting the registered person not to enter in RG -23D register the goods in respect of which he does not propose to issue modvatable invoice, the Applicants have made out a strong prima facie case in their favour. I, therefore, stay the recovery of the entire amount of penalty and post the appeal for regular hearing on 23 -10 -2003.