2005 (4) TMI 436 - AT - Central Excise

Summary

Issues:
1. Waiver of pre-deposit of duty and penalty for M/s. Grasims Indus. Ltd.
2. Waiver of pre-deposit of penalty for Shri P.K. Jain.

Analysis:
1. The first issue pertains to M/s. Grasims Indus. Ltd. seeking a waiver of pre-deposit of duty and penalty amounting to Rs. 4,75,335 along with an equal amount of penalty. The advocate representing the appellant argued that the duty was demanded on waste and scrap of iron and steel obtained during machine maintenance and repair, contending that since the waste and scrap did not arise during the manufacturing process, the duty payment should not be required. However, the respondent's representative cited a previous case where duty was upheld on scrap generated in a workshop used for plant maintenance. The advocate highlighted that the plea of manufacture was not raised in that case due to the absence of the appellants. The Tribunal, after considering both arguments, noted that central excise duty is applicable only if goods are manufactured or produced in India. In this case, no manufacturing activity was found to warrant the levy of central excise duty. Consequently, the Tribunal stayed the recovery of the duty and penalty amount during the appeal process, scheduled for regular hearing on 3-8-2005.

2. The second issue involves Shri P.K. Jain seeking a waiver of pre-deposit of a penalty amounting to Rs. 45,000. While the specific details of the arguments and counterarguments for this case are not provided in the summarized text, it can be inferred that the Tribunal's decision on the first issue regarding the interpretation and application of central excise duty laws would likely influence the decision on the waiver of pre-deposit of penalty for Shri P.K. Jain as well. The Tribunal's stance on the manufacturing activity and duty applicability criteria would likely be a crucial factor in determining the outcome of this issue as well.