ORDER
Dr. S.N. Busi
1. In this Stay Petition, prayer has been made for dispensing with the condition of predeposit of duty of Rs.19,742/- demanded and penalty of Rs.1,000/- imposed on M/s Hind Chemicals, Kolkata vide Order-in-Original No.01/Demand/99 dated 6.1.99 of the Assistant Commissioner, Central Excise, Dum Dum Division which was confirmed by the Commissioner (Appeals) vide Order-in-Appeal No.114/Cal-III/99 dated 23.5.2000.
2. Shri B.N. Chattopadhaya, learned Consultant appearing for the applicatns/appellants, submits that the appellants are manufacturers of Sodium Silicate. Soda Ash is the main raw material for manufacture of sodium silicate. When the Central Excise Officers visited the factory of the appellant company on 22.9.95, they noticed that a quantity of 13,750 kgs. Of ‘Soda Ash’ valued at Rs. 98,712.50 which was duly entered in RG-23A Part I was not physically present in the factory. When the officers questioned the proprietor Shri Sanjay Goenka on the spot, he explained that the said quantity of soda ash was issued for manufacture but entry to that effect remained to be made in Rg-23A Par I. Being not convinced of the said explanation, the officers had registered a case and initated the adjudiction proceedings which resulted in demand of the Central Excise duty to the tune of Rs.19,742/-. The learned Consultant argues that it was only a bona fide mistake on the part of the applicant/appellant to have not made an entry in respect of issue of the said quantity of soda ash for manufacture during the dates 20th and 21st September, 1995. He clarified that for the first six months prior to the visit of the Central Excise Officer the appellants stopped the practice of issuing ‘chits’ in respect of the raw materials sent to the shop floor. Therefore, the appellants were not able to substantiate with documentary evidence their plea of issue of the said input for manufacture of the final product on the said dates. He was quite emphatic that the appellants had not committed any act so as to warrant demand of duty and imposition of penalty on them. Hence, he prays for unconditional stay and waiver of the condition of predeposit of the said duty and penalty.
3. Shri A.K. Chattopadhaya, learned JDR appearing for the Revenue, reiterates the reasoning contained in the orders of the authorities below.
4. After having carefully considered the submissions from both sides and on perusal of the relevant records, I am convinced that the appellants have been able to make out a prima facie case in their favour. In view thereof, grant of unconditional stay and waiver of the condition of predeposit, as prayed for, are quite justified. Ordered accordingly.
5. In the result, the Stay Petition is thus allowed unconditionally.
(Dictated & pronounced in Court)