ORDER
V.K. Jain, Member (T)
1. Heard Shri B.N. Chattopadhyay, ld. Consultant on the Stay Application filed by the Appellant. The duty involved in this case is Rs. 86, 806/- plus 3,30,432/- plus a penalty of Rs. 25,000/- has been imposed on the appellant. It is a case where the appellant has taken Modvat credit after six months of the issue of the invoices. He submits that the appellant’s factory is closed from 2002. They have already deposited Rs. one lakh as per the orders of the Commissioner (Appeal) and in view of above, he submits that no further deposit be asked from the appellant.
2. Heard Shri A. Hore, ld. JDR. He submits that in this case there was clear violation of Proviso to Sub-rule (2) of the Rule 56G of erstwhile Central Excise Rules. It provides that provided further that the manufacturer shall not take credit after six months of the date of issue of any of the documents specified in first proviso to this Sub-Rule. In view of this, he submits that the appellant be asked to pay the full amount of duty and penalty.
3. Heard both the sides. I take into consideration the amount imposed on the appellant which is paid by the appellant after the stay order granted by the Commissioner (Appeal). The appellant have not made out a case for full dispensation of duty and penalty. Suffice to say at this stage, the appellant to pay Rs. one lakh within a period of 8 weeks from today. This is in addition to what they have paid in pursuance of the Commissioner’s (Appeal) order. Compliance to be reported on 10.03.2006.
Dictated and pronounced in the open court.