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TMI Blog1994 (8) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... sed the facts of manufacture and clearance of the said goods to M/s. Bharath Electronics Ltd., Bangalore without following Central Excise procedures and without payment of Central Excise duty, in contravention of the said rules, with an intention to evade payment of Central Excise duty. 2. We have heard Shri N. Venkataraman, ld. Advocate for the appellant and Shri B.K. Singh, ld. SDR for the Revenue. 3. Ld. Advocate submitted that the Election Commission of India had placed order for manufacture of electronic voting machines with M/s. BEL., Bangalore. M/s. BEL has placed job work for manufacture of sub-assembly with the appellants and that they had supplied them raw-material under proper cover of gate pass and entries made in the registers. It is further submitted that the Government of India issued notification under Section 5A of the Central Excises and Salt Act, 1944 exempting 75,000 electronic voting machines manufactured by M/s. BEL and supplied to the Election Commission of India from the whole of duty of excise leviable thereon which is specified in the Schedule to the Central Excise Tariff Act, 1985. Ld. Advocate pointed out that this being a specific notification under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-assembly part has much force and the ruling given by the Hon ble Gujarat High Court prima facie appears to be applicable. The facts and circumstances of the case would disclose that a Government had exempted the electronic machine from imposing any duty in public interest. Taking the ruling cited before me, it follows that even sub-assemblies are also covered. We have perused the balance sheet although there is a good liquidity position in terms of sales and current assets yet the balance of convenience is in favour of the appellants. The appellant would also be put to great hardship if they ask to deposit Rs. 20 lakhs for a job work done of Rs. 6 lakhs only. The current assets, loans and advances are to the tune of Rs. 85,48,594.54 and the current liabilities are shown to the tune of Rs. 75,66,754.68. Therefore, in the facts and circumstances of the case, we accept the offer given by the appellants. The appellants should deposit Rs. 2 lakhs in cash within eight weeks from the date of this order and also furnish bank guarantee for another sum of Rs. 5 lakhs. On their deposit Rs. 2 lakhs and furnishing the bank guarantee of Rs. 5 lakhs within the said period, the balance amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid entry is to give benefit to `machinery in its wider sense so as to include its parts also. Any restricted meaning to the word `machinery would render the exemption meaningless because a new industry would be required to pay tax for purchase of essential parts of machine. The very object of exemption would be defeated. We, therefore, hold that the word `machinery as used in the entry 53 must be widely construed. In the case before us the beaters are the most integral part of the crusher or the machine-without which quartz stones cannot be crushed. [Emphasis supplied] 7. I also feel that there is no prima facie case regarding demand of duty being time barred. The appellants themselves never intimated about the manufacture of such sub-assemblies/parts. Learned advocate had relied upon a declaration and an undertaking sent by M/s. Bharat Electronics Ltd. (BEL) dated 17-7-1989 (pages 46 47 of the Paper Book) for availing the benefit of Notification No. 214/86. In the said letter (at page 46 of the Paper Book), we do not find any mention of the appellants name being given by BEL as one of the job workers. From the undertaking at page 47 of the Paper Book also I do not find th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . whereas their current liabilities are only to the tune of Rs. 9,81,839.86 p. They thus have nett current assets to the tune of Rs. 75,66,754.68 p. From a perusal of their Income and Expenditure Account, I also note that their scale of operations on account of job charges are to the tune of over Rs. 78 lakhs. In the circumstances, I find that they have a capacity to raise adequate funds. Having regard to the overall facts and circumstances of the case, I would direct the appellants/applicants to deposit an amount of Rs. 10 lakhs (Rupees ten lakhs only) within a period of eight weeks from the date of communication of the order. On compliance with the aforesaid direction, balance amount of duty and penalty shall stand waived. I have no objection to the case being given out of turn hearing on account of heavy stakes of revenue involved and the issue being within a narrow range. Dated : 12-4-1994 Sd/ (P.C. Jain) Member (T) POINT OF DIFFERENCE Whether in the facts and circumstances of the case, the stay petition of the applicants is to be allowed on deposit of Rs. 2 lakhs in cash within 8 weeks and also, furnishing a bank guarantee for another sum of Rs. 5 lakhs, as direct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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