2007 (4) TMI 435 - AT - Central Excise

Summary

Issues:
1. Waiver of pre-deposit of non-admissible deemed credit amount and penalty under the impugned order.

Analysis:
The appellant sought waiver of pre-deposit of the amount of non-admissible deemed credit and penalty as per the impugned order. The appellant's counsel argued that the clearance of the appellant's sole proprietory concern should not have been clubbed with the clearances of the partnership firm, as it was an independent entity. It was contended that if such clubbing was not done, the appellant unit did not exceed the total limit of Rs. 75 lakhs, making it eligible for the benefit under Notification No. 1/1993.

Under Paragraph 2 of the said notification, it was highlighted that the aggregate value of clearances of specific goods for home consumption by a manufacturer should not exceed Rs. 75 lakhs in a financial year. The appellant was a partner in the firm and also a manufacturer in her own factory and as a partner in the partnership firm. The Tribunal noted that a partnership firm has no separate legal entity, and when partners manufacture collectively, they do so in the name of the partnership firm. Therefore, the Tribunal found no justification for a total waiver of pre-deposit.

Considering the facts and circumstances of the case, the Tribunal directed the appellant to deposit Rs. 1,00,000 within six weeks. Upon such deposit, there would be a waiver of pre-deposit of the remaining duty amount and penalty during the appeal's pendency. Failure to make the required deposit would result in the dismissal of the appeal. The application was disposed of accordingly, with a compliance reporting scheduled for a specific date.