2004 (6) TMI 67 - AT - Central Excise

Summary

Issues: Applications for waiver of pre-deposit of duty and penalty arising from the order of the Commissioner of Central Excise (Appeals).

The judgment by the Appellate Tribunal CESTAT, Mumbai, involved applications for waiver of pre-deposit of duty of Rs. 2,71,540/- and penalty of an equal amount, along with a penalty of Rs. 25,000/- under Rule 26 of the Central Excise Rules. The show cause notice proposed the recovery of duty from both M/s. Kilitch Co. (Pharma) Ltd. and M/s. Kilitch Drugs (India) Ltd. The Additional Commissioner confirmed the demand against M/s. Kilitch Drugs (India) Ltd. and imposed a penalty equal to the duty under Section 11AC on M/s. Kilitch Co. (Pharma) Ltd. and a penalty of Rs. 25,000/- on M/s. Kilitch Drugs (India) Ltd. A corrigendum was issued by the Additional Commissioner, amending the order to mention "M/s. Kilitch Co. (Pharma) Ltd." instead of "M/s. Kilitch Drugs (India) Ltd." The Commissioner (Appeals) upheld the order as amended by the corrigendum, leading to the applications for waiver and appeals. The Tribunal noted the submission that the corrigendum resulted in a total departure from the initial duty demand against M/s. Kilitch Drugs (India) Ltd., which was impermissible in law. Consequently, the Tribunal waived the pre-deposit of duty and penalties, staying the recovery pending the appeals.