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of <h1>Tribunal permits modernization of Tyre Building Machines over objections</h1> <h3>VIKRANT TYRES LTD. Versus COLLECTOR OF CENTRAL EXCISE, BANGALORE</h3> VIKRANT TYRES LTD. Versus COLLECTOR OF CENTRAL EXCISE, BANGALORE - 1998 (102) E.L.T. 699 (Tribunal) Issues:1. Duty demand on Tyre Building Machines (TBMs).2. Confiscation and redemption fine imposed.3. Stay application and deposit requirements.4. Request for removal of TBMs for modernization.5. Objections raised by the JDR.Issue 1: Duty demand on Tyre Building Machines (TBMs)The Commissioner of Customs demanded a duty of Rs. 28,65,289.95 on 17 Nos. of TBMs valued at Rs. 1,66,10,376.45, used in the main plant and Radial tyre plant during 1987-88 to 1991-92. Additionally, 19 Nos. of TBMs were confiscated with an option to redeem on payment of a fine of Rs. 5 lakhs. A penalty of Rs. 5 lakhs was also imposed.Issue 2: Confiscation and redemption fine imposedThe appellants filed an appeal against the Commissioner's order, leading to the Tribunal directing them to deposit Rs. 15 lakhs, waiving the balance amount of duty, penalty, and redemption fine during the appeal. The applicants complied by depositing the required amount, seeking to modernize their plant by replacing the TBMs subject to appeal.Issue 3: Stay application and deposit requirementsThe applicants submitted a miscellaneous application, stating their compliance with the Tribunal's stay order by depositing Rs. 15 lakhs. They sought permission to remove the TBMs for modernization purposes, offering to pay the redemption fine. The JDR raised objections regarding the application's status and listing, which the Tribunal deemed frivolous, allowing the application to proceed.Issue 4: Request for removal of TBMs for modernizationThe applicants emphasized the need to dismantle and dispose of the TBMs to facilitate their plant's modernization. Despite their willingness to pay the redemption fine, the Superintendent of Central Excise did not agree to their request. The Tribunal granted permission for removal upon an additional deposit of Rs. 10 lakhs within three weeks, enabling the applicants to proceed with their modernization plans.Issue 5: Objections raised by the JDRThe JDR objected to the application's status and listing, claiming unavailability of the case file. However, the Tribunal considered these objections hyper-technical and allowed the application to proceed, emphasizing the urgency of the matter and the hindrance caused to the modernization program. The Tribunal directed the applicants to make an additional deposit of Rs. 10 lakhs for the removal of the TBMs, enabling them to continue with their modernization plans.This detailed analysis of the judgment addresses the duty demand, confiscation, stay application, request for removal of TBMs, and objections raised, providing a comprehensive overview of the legal proceedings and decisions made by the Tribunal.
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