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1997 (7) TMI 336 - AT - Central Excise
Issues: Application for dispensation of pre-deposit of demanded amount and penalties based on non-compliance with Notification 1/93, limitation grounds, financial position of appellants.
Analysis: The appellants sought dispensation of pre-deposit of Rs. 1,60,678/- demanded from the partnership concern and penalties imposed on the firm and the Managing Partner. The advocate argued that the demand pertained to a period different from the Show Cause Notice issuance date, emphasizing the turnover did not exceed Rs. 30 lakhs due to clubbing with the predecessor firm's clearances under Notification 1/93. The advocate contended that the appellants had filed required declarations and did not suppress any facts, thus invoking limitation grounds for dispensation. The financial position of the appellants was highlighted, indicating they were a small-scale unit with minimal profits. The turnover for the relevant year was provided, showing a gross profit of Rs. 12,42,676/-. The advocate proposed a nominal pre-deposit due to the limited net profit of Rs. 80,000/-. However, the JDR for the department had no instructions regarding the appellants' financial status. Upon consideration, the Tribunal observed that the appellants had availed the benefit of Notification 1/93 and should have been aware of the exemption parameters, including the Rs. 30 lakhs clearance limit from a factory. The Tribunal emphasized the appellants' responsibility to ensure compliance with the notification requirements before claiming benefits, irrespective of filing declarations. As the appellants did not plead being misguided or misunderstanding the notification provisions, the Tribunal held that the longer limitation period was rightly invoked. Considering the appellants' financial position, the Tribunal directed a pre-deposit of Rs. 80,000/- by a specified date, with the balance amount and penalties dispensed with pending appeal. The Tribunal scheduled a follow-up on 29-8-1997 to review compliance with the pre-deposit directive.
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