2004 (11) TMI 424 - AT - Central Excise

Summary

Issues:
1. Prayer for dispensing with the pre-condition of deposit of duty amount and penalty.
2. Classification of final products under different headings.
3. Entitlement to Modvat credit and calculation of final demand of duty.
4. Bar on limitation for filing declaration or classification list.
5. Adjudication of the stay petition based on prima facie case.

Analysis:
1. The appellant sought dispensation with the pre-condition of depositing duty and penalty amounts. The demand was confirmed for Coated Calcite under a specific heading, contrary to the appellant's claim, leading to the dispute.

2. The appellant argued that the final products should be classified under a different heading, attracting a nil rate of duty under a particular notification. The Commissioner agreed on Modvat credit entitlement but failed to consider it in the final duty demand calculation.

3. The appellant contended that considering the Modvat credit would reduce the duty demand significantly. Additionally, the appellant claimed a limitation defense for not filing a declaration or classification list due to a bona fide belief in the proper classification under a specific heading, supported by actions of other units.

4. The Respondent reiterated the reasoning of the adjudicating authority, emphasizing the classification and duty demand aspects.

5. The Tribunal acknowledged the appellant's entitlement to Modvat credit, reducing the duty liability substantially. The Tribunal also accepted the limitation defense based on the bona fide belief due to actions of other units, leading to a strong prima facie case in favor of the appellant for granting the stay petition unconditionally. The Tribunal ordered in favor of the appellant based on the presented arguments and evidence.