9911796707
TMI Blog2002 (11) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner, an individual, is engaged in the business of printing, decorating and ornamenting the glazed tiles under the trade name 'Keramos'. The tiles manufactured by the petitioner are classifiable under Chapter Heading 6906.10 of the Schedule to the Central Excise Tariff Act, 1985. The glazed tiles are the raw material for his activity but these are not manufactured by him. The tiles manufactured under various brands are procured from different sources by paying full duty of excise. The final product of the petitioner is claimed to be customer specific inasmuch as printing and decoration of tiles is done as per the specifications/design approved by the customers. Sometimes printing and decoration is done on the tile as it is but sometimes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... printed and decorated tiles under the brand name of other manufacturers who were not entitled to the benefit of the said notification and, as such, he could not claim the benefit of the said notification. 4.Rejecting the petitioner's detailed reply, stating that he had nothing to do with the brands of other manufacturers, for whom he was not even carrying out any job work, and explaining his entire activity, the adjudicating authority, vide its orders dated 29th November, 1999 and 31st, January, 2000, confirmed the aforenoted demand on account of the excise duty, besides levying penalty of Rs. 1 lac on the petitioner. As a result of the said orders, a total demand of Rs. 18,89,718/- was created against the petitioner. 5.Aggrieved, the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely no association with the brand names of various tile manufacturers whose tiles are used merely as raw material; the petitioner purchases the duty-paid tiles from the market on which the brand name of the respective manufacturer is pre-cast; being a ceramic tile, the brand name of the manufacturer cannot be erased; the petitioner is selling the decorated tiles under his brand name "Keramos" , for which invoices are issued under the said brand. It is, thus, asserted that the petitioner being a small scale manufacturer is entitled to SSI exemption notification and, therefore, no amount of duty and penalty as demanded is payable by him. Ms. Bagga, learned Counsel for the respondents, on the other hand submits that since the tiles printed/dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the controversy as to whether the petitioner is eligible for the SSI exemption notification or not because that would be a matter which will have to be gone into by the Tribunal at the time of final hearing of the appeal. It would not be desirable for us to embark upon a detailed enquiry at this stage itself to find out whether the stand of the petitioner is on terra firma. The only question for consideration is as to whether the Tribunal has exercised the discretion vested in it under Section 35-F of the Act correctly in directing the petitioner to make a deposit of Rs. 14 lakhs as a pre-condition for entertainment of its appeal, on sound legal principles by taking into consideration all the relevant facts. 11.Having carefully perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neither be desirable nor proper as possibility of such conclusions influencing the appellate authority cannot be ruled out. Suffice it to say that the material facts, as highlighted by the petitioner and not controverted by the respondents in their reply affidavits, except reiterating that the tiles sold by the petitioner carry the brand name of some manufacturers, in our opinion, makes out a very strong case in favour of the petitioner. As noticed above, the non-consideration of these vital and relevant facts has vitiated the impugned order of the Tribunal and, therefore, it cannot be sustained. 13.For the foregoing reasons and keeping in view the financial hardship, pleaded by the petitioner and noticed by the Tribunal, we are of the con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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