2004 (10) TMI 370 - AT - Central Excise

Summary

Issues:
1. Applicability of pre-deposit requirements under Rule 57CC and Section 35F of the Central Excise Act, 1944.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Chennai involved the issue of whether the appellants were required to pre-deposit certain amounts in relation to the clearance of computers under exemption. The appellant argued that as the payment under Rule 57CC did not pertain to duty, the provisions of Section 35F would not be applicable. The appellant relied on precedent cases to support this argument. The respondent, on the other hand, supported the findings of the lower authorities and requested the appellants to comply with the terms set by the Bench.

Upon considering the submissions from both sides and examining the records, the judge noted that Section 35F of the Act requires the deposit of duty and penalty, not other amounts like interest. Since the payment under Rule 57CC was not considered duty, following the precedent set by earlier Tribunal decisions, the judge waived the pre-deposit requirement of Rs. 99,072 calculated at 8% on the value of computers. Additionally, the judge waived the pre-deposit of the penalty amount of Rs. 5,000 and stayed its recovery until the final disposal of the appeal. The decision was made based on the well-settled position established by previous cases, providing relief to the appellants in this matter.