2003 (10) TMI 468 - AT - Central Excise

Summary

Issues:
1. Stay application seeking waiver of duty pre-deposit disallowed by Commissioner (Appeals) for Modvat credit on explosives used outside factory premises.

Analysis:
The appellants sought waiver of the pre-deposit of duty amount confirmed against them in the impugned order-in-appeal. The Counsel argued that their case aligns with the Jaypee Rewa Cement judgment, emphasizing the continuity of Modvat credit on explosives. However, the JDR supported the impugned order's correctness. The Judge examined the Apex Court's Jaypee Rewa Cement judgment, noting the post-amendment requirement for the input to be used in the factory. The Judge differentiated between the previous and amended definitions of "input," concluding that the case does not align with the cited judgments. The Commissioner (Appeals) had valid reasons for disallowing the Modvat credit, leading the Judge to deny total waiver of the pre-deposit at this stage due to the interpretation of Rule 57A and the amended definition of "input."

The Judge directed the appellants to make a pre-deposit of Rs. 2 lakhs within 8 weeks. Upon compliance, the balance duty pre-deposit would be waived, and recovery stayed during the appeal's pendency. Failure to adhere to the stay order's terms could result in appeal dismissal under Section 35F of the Act, with a compliance reporting set for 19-11-2003.