ROCKMAN CYCLE INDUSTRIES LTD. Vs. CCE, CHANDIGARH

JUDGEMENT

(1.) EXAMINED the records and heard both sides. The appeal is admitted.

(2.) LD . Advocate Sh. J.P. Kaushik representing the party in the stay application submits that the only issue involved in the case is whether modvat credit was admissible to the applicants in respect of the stock of inputs as on 12.3.96 (date of taking credit) under Rule 57H of the Central Excise Rules and whether such credit could be denied on the ground that the declaration under Rule 57H was filed after that date. Ld. Counsel has further submitted that, in earlier cases, the Tribunal has held such credit to be allowable to the assessees. In this connection, he had cited the decision in the case of Narbheram Motors Private Ltd. Vs. Commissioner [2000 (38) RLT 291]. He, therefore, pleads a strong prima facie case in favour of the applicants for the purpose of complete waiver of pre -deposit of the duty and penalty amounts. He has also canvassed a strong prima facie case on another count. The adjudicating authority had denied modvat credit to the extent of over Rs.44,000/ - and imposed on the applicants a penalty of Rs.10,000/ -. The lower appellate authority reduced the quantum of duty deniable as modvat credit to Rs.18,550/ - but maintained the penalty at the same amount of Rs.10,000/ -. In view of this strong prima facie case, ld. Counsel has prayed for complete waiver of duty and penalty amounts. I have also heard ld. JDR, Sh. K. Panchatcharam. He has opposed the prayer for complete waiver of pre -deposit, on the strength of findings of the lower authorities.

(3.) ON a careful consideration of ld. Advocate's arguments, I am convinced of the existence of strong prima facie case and accordingly, I allow this application unconditionally. there will be complete waiver of pre -deposit of the duty and penalty amounts and stay of recovery thereof during the pendency of the appeal, which all arise for regular hearing in due course of time.