BHARAT SEATS LTD Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) ARGUING on the application for waiver of pre -deposit of Rs. 39,53,730/ - confirmed as Additional Excise duty on "man -made fabrics laminated" manufactured by M/s. Sarvpriya Industries Ltd. as job work for the appellants (who are manufacturers of automobile seats) and penalty of equal amount imposed under Section 11AC of the Central Excise Act, the learned Senior Counsel Shri M. Chandrashekhran submits that the liability to pay Additional Excise duty levied under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 is upon the manufacturers of the man -made fabrics viz. M/s. Sarvpriya Industries and that the undertaking given by the appellants herein in terms of Notification No. 214/86 -C.E., dated 25.03.1986 which has been re -lied upon by the Commissioner to confirm the liability against the appellants is in respect of payment of Basic Excise duty only and does not extend to responsibility to discharge liability of payment of Additional Excise duty. He therefore, prays for waiver of pre -deposit of duty and penalty and stay of recovery thereof during the pendency of the appeal.

(2.) THE prayer is opposed by Shri R.D. Negi, learned DR who submits that the declaration under Rule 57F(4) furnished by the appellants, points them to discharge duty liability on the laminated MM fabrics and reiterates the findings of the Adjudicating Authority.

(3.) WE have carefully considered the rival submissions. On hearing both sides, we see prima facie force in the submissions of the learned Counsel that the expression 'duty of excise' used in Notification No. 214/86 in terms of which the assessee had furnished a declaration means Central Excise duty payable as per the Schedule to the CETA, 1985 and does not cover Additional Excise duty which is leviable, not as per the Schedule to the CETA but as per a separate enactment namely the Additional Duties of Excise (Goods of Special Importance) Act, 1957. Therefore, prima facie, the appellants are not liable to discharge liability of payment of Additional Excise duty. We therefore, dispense with the pre -deposit of duty and penalty and stay recovery thereof pending the appeal.