1990 (2) TMI 191 - AT - Central Excise

Summary

Issues: Application for waiver of pre-deposit of duty and penalty under the impugned order.

The judgment pertains to an application for waiver of pre-deposit of a duty and penalty imposed on the petitioner under the impugned order of the Additional Collector of Central Excise. The petitioner argued that the Additional Collector lacked the authority to invoke the longer period of limitation under Section 11A of the Central Excises & Salt Act, 1944, as they were not a "Collector." The petitioner also claimed entitlement to the benefit of Notification 167/71, dated 1-9-1971, due to being a training institution with no commercial activity involved in the manufacture of tools and dies. The petitioner highlighted their financial position, showing a significant loss carried forward. The respondent, however, contended that the show cause notice was valid, and the petitioner was not eligible for the benefit of the notification based on previous tribunal rulings.

The Tribunal found no merit in the petitioner's argument regarding the incompetence or lack of jurisdiction of the Additional Collector to issue the show cause notice invoking the longer period of limitation. It clarified that an Additional Collector is considered a "Collector" for adjudication purposes. The Tribunal distinguished the case cited by the petitioner from a Special Bench ruling, as it involved a Deputy Collector, not an Additional Collector. Referring to a previous tribunal decision on a similar issue concerning the petitioner's sister institution, the Tribunal held that the petitioner was not entitled to the benefit of the notification exempting goods produced in educational institutes from duty if those goods were sold on a commercial basis.

After reviewing the petitioner's financial position based on the Balance Sheet, which showed a comfortable financial status with substantial turnover and assets, the Tribunal directed the petitioner to make a pre-deposit of a specified amount. The Tribunal ordered the petitioner to deposit Rs. 2,00,000/- by a specified date and report compliance, following which the balance of duty and the entire penalty would be waived pending appeal. The Tribunal set a date for the appeal hearing, taking into account all relevant facts and circumstances, including the petitioner's financial position.