2003 (9) TMI 505 - AT - Central Excise

Summary

Issues: Application for waiver of pre-deposit of penalty of Rs. 10,000 imposed on M/s. Chandan Chemicals.

In this judgment by the Appellate Tribunal CESTAT, New Delhi, the issue at hand was an application filed by M/s. Chandan Chemicals seeking a waiver of the pre-deposit of penalty amounting to Rs. 10,000 imposed on them. The Applicant, represented by Shri R.K. Goel, Advocate, argued that they are a dealer registered under the Central Excise Act, dealing in chemicals manufactured by M/s. Hindustan Lever Limited. They explained that they received a consignment of 15,058 kgs. of Sodium Tripoly Phosphate under a specific invoice from M/s. Hindustan Lever Ltd. and intended to sell the entire quantity in retail on non-modvatable invoices, thus not entering the consignment in their RG-23D register. The Advocate referred to Board Circular No. 96/7/95-CX, dated 13-2-95, which exempted registered persons from entering certain consignments in the register if non-modvatable invoices were to be issued. The contention was that based on this circular, no penalty should be imposed on the Applicants. The Respondent, represented by Shri S.C. Pushkarna, JDR, supported the Commissioner (Appeals) findings.

The Tribunal considered the Board's Circular, which allowed registered persons not to enter in the RG-23D register the goods for which non-modvatable invoices were to be issued. The Tribunal acknowledged that the Applicants had made a strong prima facie case in their favor based on this circular. Consequently, the recovery of the penalty amount was stayed, and the appeal was scheduled for regular hearing on 23-10-2003. The judgment reflected a careful consideration of the legal provisions and circulars governing the issue of invoicing and registration under the Central Excise Act, ultimately leading to a temporary relief for the Applicant pending further hearing.