2004 (7) TMI 499 - AT - Central Excise

Summary

Issues involved: Stay application regarding the denial of benefit of an exemption notification for duty demands on Helium imported and mixed with Oxygen supplied for off-shore oil exploration and exploitation.

Analysis:
The Appellate Tribunal, after hearing both sides, noted that duty demands were made by denying the benefit of an exemption notification due to the belief that the process employed did not amount to manufacture. The Tribunal observed that the notification allows raw materials to be entitled to the benefit if supplied for the manufacture of goods related to off-shore oil exploration. It was undisputed that the Helium imported was used in connection with the end-use as specified in the notification. The Commissioner (Appeals) had previously ruled in favor of the appellants, granting them the benefit. However, the present order by the Commissioner held a different view, necessitating a detailed hearing. Considering a prima facie case in favor of the appellants, the Tribunal decided to grant a full waiver of pre-deposit and stay of recovery of the amounts involved. The Tribunal also directed the Registry to list both the present appeal and the Revenue's appeal on the same issue for early hearing, acknowledging the recurring nature of the issues and the need for a prompt decision.

In conclusion, the stay applications were disposed of based on the Tribunal's consideration of the prima facie case in favor of the appellants regarding the benefit of the exemption notification for duty demands on Helium imported and mixed with Oxygen supplied for off-shore oil exploration and exploitation. The Tribunal emphasized the importance of a detailed hearing due to the differing views of the Commissioner and the pending appeal by the Revenue on the same issue. The decision to grant a full waiver of pre-deposit and stay of recovery was made to ensure fairness and timely resolution of the matter.