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2013 (3) TMI 237 - BOMBAY HIGH COURTPre deposit demanded for the purposes of entertaining the appellant’s two appeals - as per dept. cost of the materials consumed to manufacture the intermediate goods has not been correctly taken leading to undervaluation - Held that:- As the deposit of Rs. 1.38 crores out of the aggregate demand of Rs. 9.04 crores in both the appeals as confirmed by the Commissioner of Central Excise is reasonable. This is particularly so as the issue of revenue neutrality would have to be examined on merits after ascertaining what is the exact amount which is paid by units at Pimpri, Goa and Rorkee receiving the intermediate goods on which credit of duty paid is taken. As the appellant has given details only with regard to Pimpri and Goa units and not with regard to the Rorkee unit. Consequently, the same would be a matter of examination at the time of final hearing of the appeals. Further the issue whether there was any intent to evade duty on the part of the appellant or not warranting invocation of extended period is itself a debatable issue. Therefore, the deposit of the admitted amount of Rs. 1.38 crores as per the final CAS-4 Certificate submitted by the appellant cannot be said to be arbitrary and perverse. Therefore, as the issues raised in the applications are contentious and require examination in greater depth at the time of final hearing of the appeals, no reason to interfere with the order of the Tribunal directing the appellant to deposit an amount of Rs. 1.38 crores on a prima facie view. However, the time to deposit the amount is extended by a period of another six weeks from today i.e. upto 11-1-2013.
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