UNIWORTH TEXTILES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE,

JUDGEMENT

(1.) The application is for waiver of pre -deposit of duty amounting to Rs. 31,49,434/ -. The applicants are a 100% EOU. They cleared certain goods as rejects into the DTA on payment of duty calculated @ 50% of the Basic duty of Customs. Several Show Cause Notices were issued alleging that in computing the duty for clearance into the DTA, not only the Basic Customs Duty, but also that the other duties such as CVD, SAD, etc. should also be taken into account.

(2.) Shri Viswanathan shows a reference made by the Tribunal to Larger Bench vide Order No. C1/32/37 -49/01 -WZB dated 18/10/2001. He also submits that the duty has been computed by the Commissioner without taking into account the availability of other Exemption Notification under all the applicable Laws. According to him when this is done, the total burden would go down to about Rs. 20 lakhs. Mr. Shaikh arguing for the Revenue claimed that the goods cleared by the Assessee in this case were not rejects, but that they were first quality goods. We find that although such allegations has been made in the Show Cause Notice, the value taken for the purpose of computation of duty is what was declared by the Assessee. In other words, there is no escalation of values following the allegations that the goods were not rejects.

(3.) We have considered the submission and have seen the Annual Report 2000 -01. The Final Accounts shows Trading profit which have become loss after taking into account the depreciation. At the same time, the Unit has considerable Reserves and Surplus. We, therefore, think it appropriate to direct the Applicants to deposit the sum of Rs. 10 lakhs as a pre -condition of hearing of their appeal within 8 weeks from today. On such deposit being made, the requirement of pre -deposit of the remaining duty shall be waived. Compliance to be reported on 4/2/2002. (Pronounced in Court)