1998 (12) TMI 253 - AT - Central Excise

Summary

Issues:
1. Dispute over standard fitment in chassis number 1612.
2. Allegation of mis-declaration leading to demand for duty and penalty.
3. Request for waiver of pre-deposit of duty and penalty.

Analysis:
1. The dispute in this case revolves around the standard fitment in chassis number 1612. The appellant, a manufacturer of chassis, argued that a typographical error led to the wrong engine and gear box numbers being mentioned as standard fitments for chassis 1612. The appellant contended that the actual fitments were engine 697 and gear box 40, not engine 692 and gear box 30 as mentioned due to the error. The appellant emphasized that no additional amount was collected for the fitment of the higher value engine and gear box, as evidenced by the invoices.

2. The respondent, on the other hand, countered the appellant's arguments by pointing out that the declaration in the price list clearly stated that engine 692 and gear box 30 were the standard fitments for chassis 1612. However, upon scrutiny, it was found that engine 697 and gear box 40 were actually fitted in chassis 1612, leading to a demand for duty and penalty based on the alleged mis-declaration. The respondent argued that since higher value components were used, the duty and penalty were rightfully imposed.

3. After considering the submissions from both parties, the tribunal noted the discrepancy in the standard fitment declaration and the actual fitments in chassis number 1612. Despite this, the tribunal observed that no evidence was presented by the department to prove that the appellant had collected any excess amount beyond what was invoiced. As a result, the tribunal directed the appellant to deposit a sum of Rs. 10 lakh by a specified date and report compliance. Upon compliance, the balance amount of duty and penalty was stayed during the appeal process. However, non-compliance would lead to the dismissal of the appeals without further notice.