9911796707
TMI Blog2013 (9) TMI 820X X X X Extracts X X X X X X X X Extracts X X X X ..... uty was discharged on the yarn, duty not to be paid on the fabrics stage. Penalty u/s 11AC – Waiver of Pre-Deposit – Held that:- The total liability had worked out around Rs.11.30 lakhs against the clearances of fabrics - The applicant has already paid an amount of Rs.8.32 lakhs on 03.04.1998 and requested for adjustment of Rs.3.79 lakhs paid by them on yarn stage - Even though the applicant ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8th September, 1996 to 6th August, 1997, the applicant had discharged duty on the yarn and did not discharge duty on the fabrics under the mistaken belief that the excise duty is exempted on fabrics. Thus there is a short payment of duty to the tune of Rs.11,30/890/- on such fabrics. The ld. Advocate submitted that they have paid the entire amount of duty short paid i.e. Rs.8,32,211/- by debiting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was not considered by the ld. Adjudicating Authority to adjust against the liability on fabrics for the relevant period. The ld. Advocate further submitted that since they have been depositing the duty at the stage of yarn and did not discharge the duty at the stage of fabrics, there was no suppression of facts and it was only under bonafide mistaken belief that once the duty was discharged on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n stage. The ld. Adjudicating Authority though did not dispute about the payment of duty on yarn, but did not consider their request for adjustment of duty paid on yarn against the total liability of Rs.11.30 lakhs. Even though the applicant has discharged duty liability on 3rd April, 1998, prima-facie, we find that they would also be required to discharge interest also. In these circumstances, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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