AMRIT BANASPATI CO. LTD Vs. CCE

JUDGEMENT

(1.) THIS order will dispose of an application moved by the appellants under Section 35 -F of the Central Excise Act seeking stay of the impugned order in original passed by the Commissioner dated 18.4.2000 and waiver of the pre -deposit of the duty and penalty amounts confirmed therein.

(2.) THE facts out of which the present application arises may briefly be stated as under:

(3.) THE proceedings drawn were on the strength of show case notice dated 30.11.98 against the appellants who are engaged in the manufacture of vegetable products falling under Chapter 15 of the Schedule to the CETA vide which they were called upon to explain as to why differential Central Excise duty amounting to Rs. 72,27,073.20 be not recovered from them under Section 11 -A of the Act by invoking extended period of limitation as they did not pay duty on the soap stocks manufactured by them w.e.f. 23.7.96 and penalty be also not imposed under Rule 173 -Q on the allegation that during the course of manufacture of vegetable products falling under sub -heading 1504 of the CETA, product viz. soap stock classifiable under sub -heading 1507 of the CETA was also produced by them and the same was earlier chargeable to nil rate of duty vide Notification No. 2/94 -CE dated 1.3.94, but this exemption Notification was rescinded w.e.f. 23.7.96 by the Government and soap stock was made chargeable to Tariff rate of duty as the rate of 20% ad valorem from that date. They were also advised to file the declaration as required under Rule 173 -B of the Rules and to maintain statutory records but instead of complying with that advise of the Revenue department, they through letter dated 9.9.96 addressed to the Superintendent of Central Excise Range, Rajpura, took the stand that they are not manufacturing soap stock as such. They are manufacturing vegetable products and during the process of manufacture of those products, certain chemicals are used for removing the impurities and as a result thereof material which comes out in the form of impurities contains small percentage of oil and the same is further processed for conversion into acid oil. They also avered that the soap stock manufactured and used in the factory for preparing the acid oil is not chargeable to duty and is also not marketable.