RANGA INDUSTRIES Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THE petitioner challenges the order of the second respondent - THE Customs, Excise and Gold (Control) Appellate Tribunal dated 27-12-1990 passed in a stay application.

(2.) THE appeal before the second respondent- Tribunil relates to the demand of duty to the tune of Rs. 10, 25, 388. 19 for the period from 11-6-1987 to 31-7-1989 and the personal penalty of Rs. 50, 000/- imposed by the first respondent-Collector of Central Excise on 8-8-1990. THE Tribunal points out that the petitioner was paying under Tariff heading No. 86. 07 and they suddenly changed the classification into Tariff Heading No. 7325 with effect from 1-3-1988 and so described the goods in the gate passes. It is disputed by the petitioner by referring to the actual classification list, which seems to suggest that the petitioner had only indicated Tariff Heading No. 73. 25 and were also relying on exemption Notification No. 223/88 as amended by notification No. 66/89 dated 1-3-1989. THEre is also the question whether the petitioner gets rough castings from outside and they merely do the finishing work and that the character of the goods is not changed. In other words, it is claimed that the goods remain as castings. THEre is also the point of limitation, which has been noticed by the Tribunal. Ultimately, the Tribunal came to the conclusion that the petitioner has an arguable case in the appeal. However, the Tribunal observed that the petitioner does not have a strongprima faciecase. So far as the question of financial hardship is concerned, the Tribunal observed that there is no plea by the petitioner in the grounds of appeal. This is disputed by the petitioner and it is contended that the petitioner has also pleaded financial difficulty in paying the entire amount demanded. Ultimately, the Tribunal directed the petitioner to pay a sum of R s. 5, 00, 000/- as a condition for taking the appeal on file under Section 35f of the Central Excises and Salt Act, 1944.