9911796707
TMI Blog1991 (11) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... se Tariff Act, 1985 and also component parts of the aforesaid travel goods from duty paid fabrics. They are small scale industrial unit and are registered with the Directorate of Small Scale Industries, Maharashtra and are availing of the benefit of the concessional rate of duty under 175/86-C.E., dated 1st March, 1986. They also availed of the MODVAT credit scheme and have filed declaration as required under Rule 57G of the Central Excise Rules, showing the nature of inputs, heading numbers, under which the inputs are classified and also description of the final products and their sub-heading numbers. Price lists and classification lists, RT 12 returns and RG 23A Part II accounts have been filed with the Department ever since the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere raided by the Excise authorities on 22-2-1989 and thereafter a show cause notice was issued as to why a penalty should not be imposed on the applicants under Rule 173Q. The adjudicating authority vide order dated 29-7-1991 imposed a penalty of Rs. 1,50,000/- on each of the applicants and hence the present applications for waiver of predeposit and stay of the penalty. 2. E/Stay/2361/91-C in E/4033/91-C. - The applicants are a Small Scale Industrial Unit engaged in the manufacture of articles of plastic and fabric goods to be used as components in plastic moulded suit cases and brief cases. The articles of plastic were classifiable under sub-heading 3922.90 during the period 1-3-1986 to 9-2-1987 and under sub-heading 3926.90 during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in this case was issued on 16-8-1989 demanding duty of Rs. 39,69,064.12 for the period 1-4-1986 to 31-3-1989 in respect of articles of plastic falling under Chapter 39 and component parts of travel goods alleged to be classifiable under sub-heading 4201.90. The Department contends that since the said articles of plastic were not manufactured directly from the raw materials falling under sub-heading No. 39.01 to 39.15 they were subject to basic duty at the rate of 15% ad valorem and SED. The adjudicating authority confirmed the demand and also imposed a penalty of Rs. 20 lakhs under Rule 173Q and also confiscated land, building, plant and machinery with an option to redeem on payment of a fine of Rs. 1 lakh in lieu of confiscation. 3. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing a prima facie case in their favour. We, therefore, waive the predeposit of the penalty and stay its recovery during the pendency of the appeals in E/Stay/2359/91-C E/Stay/2360/91-C in Appeals No. E/4031 4032/91-C. 5. Arguing next on the Stay application No. E/Stay/2361/91-C filed by M/s. Pearl Enterprises, the learned Counsel submitted that the duty demand is not sustainable in view of the Tribunal s decision in the case of Bradma of India Ltd. v. Collector of Central Excise, Bombay [1990 (50) E.L.T. 533 (Tri.) = 1990 (16) ETR 459] wherein the Bench had occasion to interpret Notification 68/71 (which is the predecessor to Notification 132/86) and hold that if articles of plastic are produced out of the artificial resin and plastic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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