ORDER
Smt. Archana Wadhwa
1.
The prayer in all the nine applications is for dispensing with the condition of predeposit of duty amount of Rs. 3,07,286.66 (rupees three lakhs seven thousand two hundred eighty six & sixty six paisa) confirmed by the authorities below and penalty o Rs. 5,000/- imposed upon the appellant under the provision of rule 173Q.
2. After hearing Shri D.K. Singh, ld.adv. and Shri V.K. Chaturvedi, ld.SDR we find that the appellants are engaged in the manufacture of Oxygen gas being cleared in cylinder and classifiable under chapter 28 of the Central Excise Tariff Act. Prior to 1.3.94 the appellant was clearing the said goods @ Rs. 8/M3 inasmuch as the duty was attracted on Oxygen gas on specific rates. w.e.f. 1.3.94 as valorem duty was levied and accordingly the appellant filed a price list with the Asstt. Commissioner. In the said price list assessable value was claimed @ Rs. 5/M3 on claiming Rs. 3/M3 as transportation charges. The authorities below entertained a view that inasmuch as prior to 1.3.94, no transportation charges were being claimed by the appellant and no transportation was being undertaken by them, the segregation of the price of the Oxygen gas by claiming Rs. 3/- as transportation charges was nothing but an attempt on their part to reduce the assessable value. The above view was based upon the fact that prior to 1.3.94 the appellants could not produce any documentary evidence to show that transportation was being undertaken by them. Shri Sinha’s contention is that the Revenue is not concerned with the period prior to 1.3.94 and should have allowed the reduction of transportation charges from the assessable value undertaken by them for the period after 1.3.94. However, on being quarried as to whether the goods are being delivered on the customers’ end, he submits that he is not aware of the factual position. As regards the financial position we find that the appellants have not been able to place on record any evidence to show that they are into financial difficulty in depositing the said amount of duty, inspite of the three opportunities given to them by adjourning the matters repeatedly.
3. We find that the issue as to whether the appellants are entitled to claim the deduction with regard to the freight charges of Rs. 3/- is arguable from both the sides. The detailed facts have to be gone into, which can only be done at the time of final hearing of the appeal. As such taking into account all the facts and circumstances including the financial status of the appellant, we direct the appellant to deposit an amount of Rs. 1,00,000/- (rupee s one lakh only) within a period six weeks from today. Subject to deposit of above amount of duty, balance amount of duty and penalty is waived and its recovery stayed during the pendency of the appeal. Matter to come up for compliance and disposal of appeal subject to ascertainment of compliance on 21.8.2001.
Dictated in the court.