9911796707
TMI Blog1998 (5) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... and penalties imposed upon the applicants herein for contravention of the Central Excise Rules. Details are as under :- Sl. No. Appeal No. Duty Penalty 1. 1050/98 Rs. 74,87,767.35 Rs. 20,00,000/- 2. 1051/98 Rs. 92,34,305.00 Rs. 25,00,000/- 2. Learned Counsel Shri Lahoty submits that the applicants have been purchasing scrap from Kabaris and had also purchased old and used sleeper rails etc. of iron or steel which were specified as inputs in Column No. 2 of the table annexed to Notification 202/88, and manufacturing specified final products described in Column 3 of the table and, the department has not discharged the burden of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hardship, referring to the balance sheet for the year ending 31-12-1997 which reflects a loss. He therefore pleads for waiver of pre-deposit of duty and penalty amount. 3. Opposing the prayer Shri D.S. Negi, learned SDR draws our attention to the order contending that it was found on examination that inputs supplied to the applicants were not of the categories specified in column two of the table of Notification 202/88, and further the department has been able to prima facie discharge the burden of showing that the inputs received were clearly recognizable as non-duty paid, as seen from the statements of the nine suppliers of inputs to the applicants. He, therefore, submits that the condition prescribed has not been fulfilled and hence t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct that inquiries conducted from all the inputs suppliers clearly revealed the nature of the inputs which was scrap and not any of the inputs specified in the table to the notification, and further that the inputs supplied had not discharged duty burden. The original railway parts and automobile parts would have discharged duty liability at the time of manufacture but they have been used and then become MS scrap which was supplied to the applicants. In this view of the matter the applicant has not made out a prima facie case for waiver on the merits viz. eligibility to the benefit of the notification, and on the other hand it is the department which appears to have a prima facie case regarding non-availability thereof. The aspect of time ba ..... X X X X Extracts X X X X X X X X Extracts X X X X
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