Stay Order No. S-559/CAL/99 arising from Stay Petition No. SP-21/99 in Appeal No. E-11/99. Case: Cureworth (India) Ltd. Vs Commissioner of Central Excise, Indore-II. CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)
| Case Number | Stay Order No. S-559/CAL/99 arising from Stay Petition No. SP-21/99 in Appeal No. E-11/99 |
| Counsel | For Appellants: Shri S.K. Bagaria, Advocate and For Respondents: Shri T.P. Kumar, SDR. |
| Judges | Smt. Archana Wadhwa, Member (J) and Shri C.N.B. Nair, Member (T) |
| Issue | Central Excise Act, 1944 - Section 35F |
| Judgement Date | Thursday July 22, 1999 |
| Court | CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal) |
Order:
Archana Wadhwa, Member (J), (Eastern Bench At Calcutta)
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The applicants are making a prayer for dispensing with the condition of pre-deposit of penalty amount of Rs. 21,43,309/- imposed under the provisions of Rules 173Q and 226 of Central Excise Rules, 1944 and an equal amount of penalty imposed under Section 11AC.
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Shri S.K. Bagaria, ld. Advocate appearing for the appellants submits that the applicants are engaged in the manufacture of bulk drugs. With the introduction of Rule 57F (17) (b) w.e.f. 1-3-1997, which required the appellants to reverse the Modvat credit earned and lying unutilised in their records as on 1-3-1997. However, the proviso to the said rule was to the effect that if the inputs are lying in stock or contained in finished products lying in stock as on 1-3-1997, the provision of the said rule would not apply. He submits that the applicants'' jurisdictional Central Excise authorities entertained a view that if the inputs are lying in their factory as contained in semi-finished stage, the Modvat credit earned on the inputs is required to be debited by them inasmuch as the said proviso does not apply to the inputs lying in semi-finished stage. Accordingly, submits the ld. Advocate that the applicants made a reversed entry of Modvat credit on 4-3-1997 equivalent to an amount of Rs. 10 lakhs and a little odd, by filing a declaration on 3-3-1997. Thereafter another declaration was filed by them on 7-3-1997 to the effect that certain other goods lying as semi-finished stage had escaped their attention and as such could not be entered in the first declaration filed on 3-3-1997. Accordingly after filing the said declaration on 7-3-1997...
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