2004 (3) TMI 626 - AT - Central Excise

Summary

Issues: Application for waiver of pre-deposit of central excise duty and penalty.

Analysis:
1. The issue at hand involves an application by M/s. Shivalik Prints Ltd. for the waiver of pre-deposit of central excise duty amounting to Rs. 6,25,000/- and an equivalent penalty. The appellant, represented by Shri R.C. Gupta, Advocate, argued that they were discharging duty under Section 3A of the Central Excise Act during the material period. The revenue rejected their abatement claim for not remaining closed for at least 15 days, although the stenter was closed until August 2001, exceeding the required period. It was highlighted that the compounded levy scheme was withdrawn from 1-3-2001, rendering Rule 96ZQ of the Central Excise Rules inapplicable from that date. The appellant had already deposited Rs. one lac.

2. On the opposing side, Shri Vikas Kumar, SDR, contended that the applicants were obligated to deposit duty on the 15th and last day of each month, which they failed to do. As the stenter remained closed for less than 15 days, they were deemed liable for the duty.

3. After considering the arguments from both parties, the Tribunal observed that the applicants had not deposited duty on the last day of the month as required. It was noted that the applicants could not unilaterally decide on the abatement claim; instead, they needed to apply to the department with appropriate documentation for such claims. The Tribunal found that the applicants had not established a prima facie case for the waiver of the entire duty amount. Consequently, the Tribunal directed the appellants to deposit an additional sum of Rs. 1,00,000/- on top of the Rs. 1,00,000/- already paid within 8 weeks. Upon compliance with this directive, the pre-deposit of the remaining duty amount and the penalty would be waived, with the recovery stayed during the appeal's pendency. A compliance report was scheduled for 26-5-2004.