EURO COTSPIN LTD., SHRI RAJEEV Vs. CCE

JUDGEMENT

(1.) These are 5 applications for waiver of pre -deposit of Central Excise duty and penalties as under: -

(2.) Opposing the prayer Ms. K.A. Mishra, learned SDR, submitted that the Managing Director of the Company had given receipt of the show cause notice alongwith all the legible documents. He contended that the applicants cannot claim that all the documents were not supplied to them. She also examined to us the modus operandi adopted by the applicants and submitted that the entire price was divided into two elements, the portion of one element was received through draft and the portion which reflected the value not shown in Excise invoices was received in cash by the Appellant company; that certain dealers have also admitted in their submissions that they were following this modus operandi since, 1997.

(3.) We have considered the submissions of both the sides. In view of the admitted position that the records available with the department are for the period September 1999 to April 2000, the Applicants have made out a strong prima facie case for the period prior to September 1999 and post April 2000. However, in respect of the period for which the documents are available with the department, the applicants have not made out a prima facie case for waiver of the entire amount of duty demanded. As the department has not disputed the use of indigenous raw material, there is a prima facie case for extending the benefit of Notification No. 8/97 -CE. In view of this we direct the applicant company to deposit a sum of Rs. 20 lakhs only within 8 weeks from today and on complying with this direction there shall be waiver of pre -deposit of the remaining amount of duty and the entire amount of penalties imposed on the applicants and the recovery of the same will remain stayed during the pendency of the appeals. Any failure to comply with this direction will result in dismissal of all the appeals without any further notice. The matter will come up for reporting compliance on 22nd September, 2004.