2005 (6) TMI 442 - AT - Central Excise

Summary

Issues:
Seeking waiver of pre-deposit and penalty for not affixing 'HMT' label on watch parts and carrying out assembly activity under HMT's supervision.

Analysis:
The appellant sought waiver of pre-deposit and penalty totaling Rs. 3,97,837/- and Rs. 4,02,837/- respectively, contending they did not affix the 'HMT' label on watch parts supplied to HMT Ltd. They argued that the assembly activity conducted under HMT's supervision is separate and not subject to duty, challenging the proceedings alleging affixing the 'HMT' monogram. The Tribunal, after hearing both sides, agreed with the appellant's contention that they did not affix the 'HMT' brand name on the parts. The assembly activity was deemed independent, conducted in various locations, with no 'HMT' branding at the appellant's premises, leading to a prima facie case in favor of the appellant.

The Tribunal allowed the stay application unconditionally, granting waiver of pre-deposit and staying the recovery of amounts in full accordance with Section 35F of the Act. The matter was directed to be disposed of within six months, with a hearing scheduled for September 16th, 2005. The decision was pronounced and dictated in open court by the Member (J), providing relief to the appellant based on the prima facie case established regarding the absence of 'HMT' branding on the watch parts and the distinct nature of the assembly activity conducted under HMT's supervision.