9911796707
TMI Blog2010 (5) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... vour of appellants. Prima facie case made out for grant of waiver of 60% of demand of duty. - E/1031/2009 - 414/2010 - Dated:- 24-5-2010 - Justice R.M.S. Khandeparkar, President and Shri P. Karthikeyan, Member (T) REPRESENTED BY: Shri G. Shivdas, Advocate, for the Appellant, Shri M. Venukanand, DR. for the Respondent. [Order per Justice R.M.S. Khandeparkar, President]. - The total amount of duty involved is Rs. 4,07,568/-with equal amount of penalty. 2. The appellants challenge the order passed by the lower authority on the ground that, the product in question is not marketable and, therefore, is not excisable mainly on two grounds - firstly, the product is exclusively meant for use thereof by one of the units of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old by them in the market so as to keep their respective trade secrets. As the constituents, their proportions and formula of preparation are kept as secret, such compounds cannot be considered to be marketable in the commercial parlance. 4. Accordingly, it is clarified that the odoriferous compound or Agarbathi dough mixed with odoriferous substances, not being capable of being- bought or sold in the market in the normal course of trade, is not an excisable product and no duty is therefore leviable on such compound arising during the course of manufacture of Agarbathi." 4. The specific defence raised by the appellants, in response to the show cause notice issued to the appellants, is that, the appellants have been manufacturing Agarba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facie, we find it difficult to accept the contentions sought to be raised on behalf of the appellants. Undoubtedly, the said Circular thus excludes the perfumery compound of the nature manufactured by the appellants from being a product which can be sold in the market in the normal course of trade. However, the said noting in the Circular is preceded by the expression "not being capable of being bought or sold in the market". A product which is not being capable of being bought or sold in the market is different from a product which is exclusively manufactured for the appellants' need in the further production of another product is concerned, the contention that the product is exclusively used for further product manufactured by the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made out for total waiver of the amount demanded under the impugned order, though certainly, prima facie, case has been made out for grant of waiver of 60% (sixty per cent) of the demand of duty. In the facts and circumstances of the case, also, in our considered Opinion, insistence for deposit of the penalty amount imposed in the matter would not be justified. 8 In the result, the application partly succeeds The appellants are directed to deposit 40% (forty per cent) of the duty demanded under the impugned order within eight weeks from today, while waiving the rest of the amount demanded under the impugned order till the disposal of the appeal. The application stands disposed of accordingly. 9. To come up for reporting compliance on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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