ORDER
P.G.Chacko
1. This application filed by the appellants prays for waiver of pre-deposit of the penalty amount of Rs.10,000/-and for stay of recovery thereof, pending the appeal.
2. The Assistant Commissioner had disallowed modvat credit amounting to Rs.92,411/- taken on furnace oil as input during the period 30.10.98 to 23.2.99 and had imposed a penalty of Rs. 10,000/- on the applicants. The appeal filed by the party against the Assistant Commissioner’s order was rejected by the Commissioner (Appeals). Hence the appeal before the Tribunal and the present application.
3. I have heard both sides.
4. Ld. Advocate Sh. K. K. Anand for the applicants submits that the entire modvat credit was reversed by the party in their RG-23A part-II register as early as on 17.8.99, well before the passing of the order of adjudication, but such reversal of modvat credit was not noted by any of the lower authorities in their respective orders. He submits that, in the memorandum of appeal filed with the Commissioner (Appeals), the appellants had clearly pointed out the reversal of credit and that, in his order, the lower appellate authority had not disputed the fact. Ld. Counsel further submits that the applicants have a strong prima facie case on merits and that the entire issue on merits involves interpretation of Notification No. 5/94-CE(NT) dated 1.3.94. In such circumstances, according to ld. Counsel, there was no warrant for imposition of any penalty. He, therefore, prays for complete waiver of pre-deposit of the penalty amount and for stay of recovery thereof during the pendency of the appeal.
5. Ld. JDR Sh. S.C.Pushkarna, fairly, concedes that the modvat credit involved in the case was reversed by the party as submitted by ld. Counsel. He further agrees that the issues involves interpretation of the above Notification. I find that in any dispute involving interpretation of a Notification, there is no warrant for imposition of any penalty on the alleged ground of violation of legal provisions on which the Notification has some bearing. On this sole ground, I am inclined to dispense with waiver of pre-deposit of the penalty amount for the purpose of hearing the appeal on merits. The application is, accordingly, allowed. There will be complete waiver of pre-deposit of the penalty amount and stay of recovery thereof, pending the appeal. In the interest of the Revenue, however, the appeal will be heard and disposed of finally in the near future. Accordingly, the appeal is posted to 19.3.2001 for regular hearing.