BALLARPUR INDUSTRIES LTD Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THIS application has been filed by the appellants for waiver of pre -deposit of an amount of duty of Rs. 2,36,935/ - and an equal amount of penalty. The duty demand raised by the department against the applicants had been confirmed by the jurisdictional Assistant Commissioner and upheld by the lower appellate authority. The penalty imposed by the adjudicating authority was also upheld by the lower appellate authority. Hence, the captioned appeal before the Tribunal.

(2.) I have carefully examined the orders of the lower authorities and have considered the submissions in the stay application. I have also heard learned advocate Shri Bipin Garg for the applicants and Shri A.K. Jain, learned JDR for the department.

(3.) LEARNED advocate has submitted that the demand of duty raised on pressmud and baggasse is against the express provisions of Rule 57CC of the Central Excise Rules inasmuch as both these goods have been held to be outside "the record" category of final products" referred to under the said Rule, by numerous decisions of the Tribunal. This submission of the learned advocate is prima facie; correct. Therefore, the applicants have been able to establish a strong prima facie case as far as the demand of duty is concerned. Consequentially, as regards imposition of penalty also, a strong prima facie case stands made out. Learned JDR has, however, urged for a direction to the party to make deposit of the full amounts of duty and penalty pending the appeal. I am not able to accept this plea in the facts and circumstances of the case. The application is allowed unconditionally. The matter is posted to 6th July, 2000.