2002 (2) TMI 408 - AT - Central Excise

Summary

Issues: Stay application for waiver of pre-deposit of duty amount and penalty under Rule 173Q of Central Excise Rules, 1944, and stay of recovery proceedings.

Analysis:
1. The main issue in this case is whether transportation charges should be included in determining the assessable value for a specific period. The Commissioner noted that an amendment in Rule 5 of Valuation (Determination of Price of Excisable Goods) Rules, 2000 stated that transportation cost, if shown separately in the invoice, would not form part of the assessable value. However, the Commissioner observed that the assessee did not include the transportation cost in the invoice, leading to a penalty charge. The applicant argued that transportation charges were not part of the assessable value and had been collected in the same manner even before the amendment. The Commissioner acknowledged this argument but emphasized the need to examine the facts in detail during the regular hearing.

2. The applicants sought a waiver of pre-deposit and stay of recovery proceedings. The Tribunal considered the submissions from both sides and recognized that the issue was related to a procedural lapse rather than an intentional evasion of duty. Referring to the amended provisions in Rule 5 of the Valuation Rules, the Tribunal found merit in the arguments presented by the assessee. Consequently, the Tribunal directed the applicants to pay Rs. 2 lakhs for hearing the appeal by a specified date. Upon compliance, the balance amount was waived, and recovery proceedings were stayed pending the appeal. The case was scheduled for further review on a specific date to monitor compliance and issue additional orders.

This detailed analysis covers the issues raised in the legal judgment regarding the waiver of pre-deposit of duty amount, inclusion of transportation charges in the assessable value, and the stay of recovery proceedings based on the arguments presented by the parties and the decision rendered by the Tribunal.