2003 (11) TMI 495 - AT - Central Excise

Summary

Issues: Stay application for waiver of pre-deposit of duty and penalty, confirmation of duty demand on waste and scrap

Stay Application for Waiver of Pre-deposit of Duty and Penalty:
The case involved a stay application for waiver of pre-deposit of duty amounting to Rs. 28,39,995/- and penalty of Rs. 19,40,797/- along with a request for stay of the recovery proceedings. The advocate for the appellant argued that in the de novo proceedings, there was no discussion regarding the duty demand under the heading 'Waste and Scrap'. He contended that as the appellants were manufacturers of paper and did not engage in manufacturing activities related to iron and steel, the duty payment on waste and scrap of iron and steel was not applicable. The adjudicating authority had mentioned that scrap generated as a result of mechanical working was liable to duty without further discussion. The Tribunal noted discrepancies in the adjudicating authority's order and granted the stay application, allowing the waiver of pre-deposit of duty and penalty.

Confirmation of Duty Demand on Waste and Scrap:
The advocate highlighted the lack of discussion in confirming the duty demand on waste and scrap during the proceedings. The adjudicating authority's order only mentioned liability to duty for scrap generated from mechanical working without detailed analysis. The Tribunal, after considering the facts and discrepancies in the adjudicating authority's order, found it a suitable case to grant the stay application and allowed the waiver of pre-deposit of duty and penalty. The decision was made based on the view that the appellants, being paper manufacturers, were not involved in activities related to iron and steel manufacturing, thus questioning the duty demand on waste and scrap.