9911796707
TMI Blog1993 (8) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... the Collector of Central Excise observes as below : The order No. 342/93/WRB passed by the Appellate Tribunal Bombay is not correct, proper and legal and is required to be set aside and the department s appeal is to be allowed as deemed fit . Anyhow, Shri Mondal, the ld. SDK pleads that this is to be construed to be as a Reference Application arising out of the order No. 342/WRB/93, dated 3-3-1993 and he has taken the trouble of formulating a question to be presented on behalf of the Collector. The question as formulated by him is reproduced below: Whether rubber compound, which is separately manufactured and which is not emerging as an intermediate product in the integrated process, could be said to be an intermediate product in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide allowing the appeal of the respondents. The present alleged reference application seeks to raise the point of law as framed by Shri Mondal but not found in the application. First we dispose of the question framed by Shri Mondal for the sake of record. In his arguments, Shri Mondal does not dispute the aforesaid facts. He also does not dispute that the rubber compound forms a component of insulated wires and cables and provides insulation for the electric wires and cables. Even treating it as a distinct product, whatever is used in the manufacture of this compound ultimately finds place in the final product and hence is to be given modvat benefit. Moreover, we also expressed surprise at the manner in which the extended period has been in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat ground, it cannot be held that these are not components of the motor vehicle. What is required to be seen is whether the item brought in is used in or in relation to the manufacture of final product. Here we find that the item actually forms a component of the final product. We could not understand how an objection can be taken for extending the benefit of the modvat credit in such a case. It is also a settled law that under Rule 57D, notwithstanding the fact that at the intermediate stage exempted product occurs, so long as the final product is dutiable, modvat credit cannot be denied. Here the admitted position is that rubber compound is eligible for exemption for captive use in terms of Notification No. 217/86, which itself applies t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t them. Despite this, larger period was invoked and a penalty of Rs. 20 lakhs was slapped on the assessees. Is this justifiable by any standards? (ii) We do not claim to be infallible and errors in appreciation of law might creep in our decisions. That is why provision is made for making reference to the High Court on points of law. But here we find that though an application has been filed in the proforma for Reference application, the an-nexure to that is found to be titled as grounds of appeal and the prayer is that the order passed by the Tribunal is bad in law and is required to be set aside. The Collector has verified and signed the annexure just below the prayer. Hence, we cannot also think otherwise that the annexure has been ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l filed by the assessee. Is this not a fruitless exercise, which could have been or should have been averted? (iii) This Tribunal, as an institution, is much in the news now. Functioning of the Tribunals in general and of this Tribunal in particular, is under a review as ordered by the Apex Court. While we welcome this, we cannot but point out that the causes for the malady of increased litigations and consequent large pendency in the Tribunal are also to be found at the grass-root level. If such orders are passed confirming demands for lakhs of rupees and imposing penalties of mind boggling nature on innocent assessees, where there is no trace of mala fides and even on merits, the issue is simple and straight as in this case, how can lit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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