{"id":198654,"date":"2005-11-22T00:00:00","date_gmt":"2005-11-21T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/sarika-paints-limited-vs-commissioner-of-central-excise-on-22-november-2005"},"modified":"2018-09-16T17:02:59","modified_gmt":"2018-09-16T11:32:59","slug":"sarika-paints-limited-vs-commissioner-of-central-excise-on-22-november-2005","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/sarika-paints-limited-vs-commissioner-of-central-excise-on-22-november-2005","title":{"rendered":"Sarika Paints Limited vs Commissioner Of Central Excise on 22 November, 2005"},"content":{"rendered":"<div class=\"docsource_main\">Customs, Excise and Gold Tribunal &#8211; Mumbai<\/div>\n<div class=\"doc_title\">Sarika Paints Limited vs Commissioner Of Central Excise on 22 November, 2005<\/div>\n<div class=\"doc_bench\">Bench: J Balasundaram, Vice, A M Moheb<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p>Moheb Ali M., Member (T)<\/p>\n<p>Page 41<\/p>\n<p>1. This application for waiver of pre-deposit of penalty and stay recovery thereof  arises   out   of   the   order   of   the   Commissioner   of   Central   Excise, Ahmedabad-III.   In the impugned order, the Commissioner imposed a penalty of Rs. 10,00,000\/-  (Rupees  Ten  lacs  only)  on  the  applicant for having  issued modvatable invoices in order to facilitate availment of credit by the recipients. The Commissioner has demanded the credit of Rs. 1,36,00,951.82 (Rupees One crore thirty six lacs nine hundred fifty one and paise eight two only) from M\/s Ajay Agrochem, who were the alleged recipients of modvatable inputs. The contention of the applicant is that no penalty is imposable on him under Rule 173Q (1) of Central Excise Rules, 1944, as he has not dealt with the goods liable to confiscation. The applicant also relied upon the decision of this Bench in the case of M\/s Ekta Enterprises and Ors. &#8211; Order No. A\/1596 &#8211; 1599\/WZB\/2004\/C-I dated 21st September 2004 to argue that penalty under Rule 173Q (1) could not be imposed on him.\n<\/p>\n<p>2. Heard both sides.\n<\/p>\n<p>3. Prima facie,  it appears that applicant has aided the manufacturer in availing   credit   by   issuing   modvatable   invoices.  (A   prima   facie   case   of contravention of Rules has been made out against the applicant. ) We observe that in this case the dealer, who issued modvatable invoices is a related person of the manufacturer.\n<\/p>\n<p>3. In these circumstances, it is a reasonable at this stage to conclude (that the dealer facilitating the manufacturer to take modvat credit not due.) The Page 42 applicant has not made out a prima facie case in his favour so as to waive predeposit. (We, accordingly, order pre-deposit of Rs. 2,00,000 (Rupees Two lacs only) within eight (8) weeks from the date of this order and upon such deposit, balance pre-deposit shall stand waived and recovery thereof is stayed.\n<\/p>\n<p>4.  Compliance is to be reported on 23rd January 2006.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customs, Excise and Gold Tribunal &#8211; Mumbai Sarika Paints Limited vs Commissioner Of Central Excise on 22 November, 2005 Bench: J Balasundaram, Vice, A M Moheb ORDER Moheb Ali M., Member (T) Page 41 1. This application for waiver of pre-deposit of penalty and stay recovery thereof arises out of the order of the Commissioner [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-198654","post","type-post","status-publish","format-standard","hentry","category-judgements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Sarika Paints Limited vs Commissioner Of Central Excise on 22 November, 2005 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/sarika-paints-limited-vs-commissioner-of-central-excise-on-22-november-2005\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sarika Paints Limited vs Commissioner Of Central Excise on 22 November, 2005 - Free Judgements of Supreme Court &amp; 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