TIMEX WATCHES LTD. Vs. CCE, MEERUT

JUDGEMENT

(1.) THE appellants M/s. Timex Watches Ltd. are required to pre -deposit duty amount of Rs. 48,24,339/ - and equal amount of penalty.

(2.) SHRI V. Lakshmikumaran, Ld. Advocate submits that the appellants were engaged in the manufacture of wrist watches and were bringing duty paid parts from outside. While processing these parts for the manufacture of wrist watches, certain parts were found to be defective and not usable as such. They were sent back to the Quality Control Department and when it was found that such parts were not usable, they were destroyed. He refers to the provisions of Rule 57D of the Central Excise Rules and submits that as the parts themselves had become waste, the credit was not required to be reserved. He prays for absolute waiver of the requirement of pre -deposit of the duty and penalty amount.

(3.) SHRI Rajeev Tandon, Ld. DR refers to the Tribunal's decision in the case of Bharat Heavy Electricals Ltd. vs CCE, Bhopal reported in 2001 (44) RLT 249 and submits that as the inputs had not been used in the manufacture of their final products (wrist watches), the appellants were required to reverse the Modvat credit.