KATARE SPINNING MILLS LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) On hearing both sides I find that the appeal itself is capable of disposal as the issue involved stands decided by the Tribunal. Accordingly the appeal is taken up for disposal.

(2.) The assessees in this case had taken modvat credit on high speed diesel oil. The Assistant Commissioner disallowed the credit of Rs. 3,54,100.89 and also imposed equivalent penalty on the assessees. This order was dated 12/10/2000. In the order itself the Assistant Commissioner had mentioned that the entire wrong credit had been reversed by the assessees and debited in the account. The assessees filed an appeal before the Commissioner (Appeals) seeking removal of the orders of penalty. In the appeal memorandum case was cited where in identical circumstances Tribunal had waived orders of penalty. In spite of this plea the Commissioner (Appeals) directed pre -deposit of Rs. 1 lakh, on the failure of the appellants before him to do so dismissed the appeal before him in terms of Section 35F of the Central Excise Act, 1944.

(3.) I heard both sides and have seen the following citations.