2005 (3) TMI 652 - AT - Central Excise

Summary

Issues:
1. Waiver of pre-deposit of Central Excise duty and penalty for two applications.

Analysis:
The case involved two applications seeking waiver of pre-deposit of Central Excise duty and penalty. The dispute arose when the department classified the impugned product under Chapter 32, while the applicants consistently classified it under Chapter 21 of the Central Excise Tariff Act. The applicants argued that a Supreme Court judgment supported their classification under Chapter 21. The department, however, contended that the extended period of limitation applied as the applicants failed to file a declaration after a relevant amendment. The tribunal noted that the department's classification under Chapter 32 was challenged in a previous case and that the prima facie claim for the applicants to classify under Chapter 21 seemed valid. As a result, the tribunal stayed the recovery of the duty and penalty, considering the demand as prima facie time-barred.

This judgment highlights the importance of proper classification under the Central Excise Tariff Act and the impact of relevant legal precedents on such classifications. It also underscores the significance of filing necessary declarations after amendments to avoid disputes regarding the period of limitation for demanding duties. The tribunal's decision to stay recovery based on the prima facie time-barred nature of the demand showcases the application of legal principles to protect the rights of the parties involved.