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TMI Blog2002 (12) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... claim of Rs. 1,60,000/- filed by M/s. Paramount Electroplating Works, Chennai-2 as invalid as there is no refund due to the assessee and also he imposed a penalty of Rs. 70,000/- under Rule 173Q of Central Excise Rules, 1944. 2. The brief facts of the case that the appellant had manufactured and cleared Two wheeler Motor Vehicle accessories without payment of duty and it was alleged that they have conveniently splitted the invoices in the name of both the Units so as to remain within the limit of exemption provided under Central Excise rules and by this act they evaded excise duty to the tune of Rs. 6,64,915.70 (B.E.D. plus S.E.D.) from 1985 onwards. Hence, a common show cause notice bearing C. No.V/87/15/1/90-CX.Adj, dt.13-9-90 was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ravi have opted for KVSS 1998 envisaged under chapter IV of the Finance (No. 2) Act, 1998 (21 of 1998) to settle the issue. The KVS Scheme was limited to Customers or Central Excise cases involving arrears of taxes (including duties, cesses, fine penalty or interest) which were not paid up as on 31-3-1998, and were still in arrears and in dispute as on the date of declarations to be made under the Rules prescribed thereunder. Also, under this scheme any part payment/deposits made were treated as an amount paid and after adjustment of said amounts, balance amount is treated as arrears for determining the duty amount to be paid under KVSS for settlement of case. Under the said KVS Scheme, the assessee have filed declaration in I B during 12/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposit made : Rs. 1,50,000.00 Duty arrears to be reckoned for KVSS : Rs. 5,14,915.70 (Less 50% waiver given under KVSS) : Rs. 2,57,458.00 The duty determined as payable under KVSS by Commissioner of C.Ex., Chennai-II Commissionerate. : Rs. 2,57,458.00 And the assessee had paid the above cited amount of Rs. 2,57,458/- only as per the Form 3, dt. 16-3-99 issued by the Commissioner of Central Excise, Chennai II Commissionerate (Designated Authority). Commissioner had not waived the penalty and redemption fine imposed on PEP Vide Order dt. 17-2-99 as there was no appeal by the Company against the decision of CEGAT in this regard. Hence the penalty amount of Rs. 40,000/- and RF of Rs. 71,995/- had before been confirmed arrears since the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Shri Kesava Rao, the same cannot be claimed by the assessee. In the circumstances, it appears that the assessee have no right to claim the pre-deposit of penalty made by the individuals. In view of the circumstances cited, the assessee were issued with a Show Cause Notice as to why the claim of refund for Rs. 1,60,000/- should not be rejected as invalid as there is no refund due to the assessee. 3. Aggrieved by the above order the appellant's company filed an appeal to this forum. In the grounds of appeal they contended as under :- "Though the KVS Scheme authorised to recover only 50% of the duty demanded in the show cause notice, the department has first adjusted the pre-deposit of Rs. 1,60,000/- against law because it is settled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir case under the said KVSS. While determining the duty liability, the Commissioner had arrived at the value only after taking into consideration the amount of pre-deposit of Rs. 1,50,000/- made by PEP (the appellants) and the details are as follows : Duty demanded as per SCN : Rs. 6,64,915.70 Less pre-deposit made : Rs. 1,50,000.00 Duty arrears to be reckoned for KVSS : Rs. 5,14,915.70 (Less 50% waiver given under KVSS) : Rs. 2,57,458.00 The duty determined as payable under KVSS by Commissioner of C. Excise, Chennai-II Commissionerate And the assessee had paid the above cited amount of Rs. 2,57,458/- only as per the Form 3, dated 16-3-99 issued by the Commissioner of Central Excise, Chennai-II Commissionerate (Designate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay have paid up part or whole of duties, fine, penalties or interest - either voluntarily or under protest or as deposit made pending any appeal or as per directions of appellate authorities or courts. Under the Samadhan Scheme such part payments already made upto the date of declaration are treated to have been paid up towards duties/fine/penalties etc. (as the case may be) vis-a-vis the total duties demanded (in show cause/demand notice case) or duties, fines, penalties or interest as determined due and payable in other cases which may be in dispute by the assessee. Thus, the balance amount of duty, fine, penalty etc. only will be deemed to be in arrears for purposes of calculating the settlement amount by the designated authority. The Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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