TRENT LIMITED Vs. COMMISSIONER OF CENTRAL EXCISE,

JUDGEMENT

(1.) APPEAL taken up for disposal, after waiving deposit.

(2.) IN this matter, the appellants used to manufacture cosmetics, which were packed in plastic bottles. In order to manufacture plastic bottles, the appellants purchased plastic granules and cleared the same after following the procedure prescribed under Rule 57F (2) of the Central Excise Rules, 1944 for the manufacture of bottles. In the year May 1988 to August 1991, eight Show Cause Notices were issued demanding reversal of Modvat credit totalling an amount of Rs. 75,99,600.53 on the ground that Modvat credit in respect of the duty paid on plastic granules was not available. In respect of the Show Cause Notices dated 26.8.1988, 7.12.1988 and 27.3.1989, three Orders -in -Original were passed by the Assistant Commissioner confirming the demands aggregating to the tune of Rs. 20,07,622.75. The same were upset by the Tribunal by its judgment dated 24.4.1993, following the judgment of the Madras High Court in Ponds (India) Ltd. v. CCE 1993 (63) ELT 3. The appellants, on 3.9.1993, in pursuance of the order of the Tribunal referred to above, recredited the Modvat credit of Rs. 20,07,622.75 and also the amount representing the remaining five Show Cause Notices totalling to Rs. 55,91,977.78. The adjudicating authority, by issue of a Show Cause Notice dated 1.3.1994 questioned the appellant as to how they could recredit the said amount of Rs. 25,91,977.78 representing the five Show Cause Notices as indicated in page 2 of the impugned order dated 25.10.2000 (page 36 of the paper book). The Assistant Commissioner by order dated 20.11.1997 confirmed the demand of Rs. 55,91,977.78 and also imposed a penalty of Rs. 12,00,000/ - purporting to follow the judgment of the Tribunal in the case of Sharma Metal Rerolling Mills v. CCE, 1993 (47) ECT 539. Against the said Order -in -Original, an appeal was filed before the Commissioner (Appeals), Mumbai II, who by the impugned order verified the pendency of five show cause notice from the Commissionerate of Central Excise, Mumbai II, and after getting a report from the Deputy Commissioner, who by his letter dated 14.9.2000, described in page 2 of the impugned order, that the five Show Cause Notices representing the said amount of Rs. 55,91,977.78 were still pending disposal but yet held in the impugned order as follows:

(3.) HENCE the present appeal.