DELTA SYSTEMS Vs. COMMISSIONER OF CENTRAL EXCISE, BANGALORE

JUDGEMENT

(1.) THE appellant is seeking waiver of pre -deposit of Rs. 3,97,837/ - and penalty of Rs. 4,02,837/ -. The appellants have supplied watch parts to HMT Ltd. Their contention is that they have not affixed the label or monogram of HMT on the watch parts. They were also carrying on the activity of assembly at the site for which no duty has been demanded. The assembly has been done under HMTs supervision. It is a different activity and therefore, the proceedings against them on the allegation that they have affixed the HMT monogram and hence they are not eligible for the benefit of SSI exemption for parts manufactured by them is not correct in terms of several judgments. Heard both sides. Prima facie, we agree with the appellants contention that the appellants are not affixing the brand name or logo of HMT on the parts. Their activity of assembly is an independent activity on which no proceedings has been initiated. That activity has been done in various other places at site. There is no affixing of HMT brand name on the parts of watches at appellants premises. Hence appellants have a prima facie case in their favour. The stay application is allowed unconditionally granting waiver of pre -deposit of the amounts and staying its recovery as full waiver is given in terms of Section 35F of the Act the matter to be disposed of within 6 months. Matter to come up for hearing on 16th September05.