ORDER
Gowri Shankar, Member (T)
1. The application by Prime Tools Company is for waiver of deposit of Rs. 56,801/- and penalty of equivalent amount. The applications by the other two individuals, who are directors of Vaishnav Screw Manufacturing Company Pvt. Ltd., (Vaishnav for short) are for waiver of deposit of penalties of Rs. 25,000/- each.
2. The notice issued to the applicants demanded duty on the ground that the goods cleared by Vaishnav were actually manufactured, not by it, but by Prime Tools Company, and proposed penalties on Kamlesh Mehta and Rohit Shah, its two directors, on this ground. In the order impugned in the appeal, the Commissioner has dropped the demand on this score and confirmed the demand on the ground that the value of clearances of Prima Tools Company exceeded the limit of Rs. 30 lakhs specified in notification 1/90. He has, however, still chosen to impose penalties on the directors.
3. There is thus prima facie no basis for imposition of penalty on these two persons who are unconnected with Prima Tools Company. We therefore waive deposit of the penalties on these two persons and stay their recovery.
4. As far as the duty demand on Prime Tools Company is concerned, the issue are arguable and we think a deposit of Rs. 25,000/- to be made within a month from the receipt of this order would be appropriate. On such deposit being made we waive deposit of the remaining amount of duty and penalty and stay its recovery.
5. Compliance on 4th September 2001.