ARJUN INDUSTRIES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS an application by M/s. Arjun Industries Ltd. for waiver of pre -deposit of Customs duty of Rs. 1,01,03,020/ - and penalty of Rs. 10,000/ -.

(2.) SH . Sameer Jain/ learned Advocate, submitted, that the applicants, a 100% EOU, had imported capital goods by availing the exemption from payment of duty under Notification No. 13/81; that due to adverse conditions, their manufacturing operations came to stand still despite installation of the plant and machinery; that the Commissioner has confirmed the demand and imposed penalty under the impugned order on the ground that they have not fully installed the imported capital goods or used them in connection with the production of the goods for export out of India. The learned Advocate raised many contentions such as that the Commissioner of Central Excise is not competent to adjudicate the matter relating to customs; that no permission for issuing the show cause notice was obtained from the Development Commissioner; that the impugned order is beyond the purview of the show cause notice and that the initial show cause notice was issued by the Deputy Commissioner and, thereafter, a second show cause notice had been issued which has resulted into the present impugned order. The learned Advocate also contended that the last personal hearing was fixed by the Commissioner for 17 -4 -2003; that they had sought the adjournment under their telegram received by the Commissioner on 10 -4 -2003; that the Commissioner proceeded to pass the order without adjourning the matter and without affording them another personal hearing in spite of the fact that the impugned order has been passed after more than 5 months of the date fixed for hearing; that as such the order has been passed in violation to the principles of natural justice.

(3.) OPPOSING the prayer, Sh. O.P. Arora, learned S.D.R., submitted that the Commissioner of Central Excise is duly competent to adjudicate the matter as the Bond has been executed by the applicants with the Commissioner of Central Excise only and they have, thus, submitted to the Jurisdictional Authority; that neither the impugned order is beyond the purview of the show cause notice nor it has been passed in violation of the principles of natural justice as on number of occasions the matter was posted for personal hearing and at that time the applicants had sought the adjournment.