2005 (12) TMI 342 - AT - Central Excise

Summary

Issues involved:
1. Denial of concessional rate of duty under Notification No. 9/2002-CE.
2. Filing of declaration claiming exemption under the notification before clearance of goods.
3. Adjudication by the authority and subsequent appeal by the Department.
4. Argument regarding the place from where the letter was posted.
5. Entitlement of the applicant for the benefit of exemption under Notification 9/2002-CE.
6. Waiver of pre-deposit of duty demanded for hearing the appeal.

Analysis:

The case revolved around the denial of the concessional rate of duty under Notification No. 9/2002-CE to the applicants due to the alleged failure to file a declaration claiming exemption before the clearance of goods. The applicants contended that they had indeed filed the declaration under their letter dated 28-8-2002, which was posted under a certificate of posting on the same date. The adjudicating authority acknowledged this submission and ruled in favor of the applicants, stating that they were entitled to the Small Scale Industry (SSI) benefit under the said notification, thereby dropping the proceedings against them. However, the Commissioner (Appeals) overturned this decision on appeal by the Department, confirming a demand of Rs. 36,768.

Regarding the argument raised by the Revenue about the place from where the letter was posted, it was noted that there is no legal requirement specifying the location from which the letter must be sent. The adjudicating authority correctly recognized the entitlement of the applicant to the exemption under Notification 9/2002-CE, irrespective of the posting location. Considering the facts and circumstances of the case, the Tribunal found merit in the applicant's plea. Consequently, the pre-deposit of the demanded duty was waived for the appeal hearing, and the matter was scheduled for further proceedings in due course.

In conclusion, the Tribunal disposed of the miscellaneous application and the stay application, emphasizing the prima facie validity of the applicant's claim for exemption under the notification, despite the Department's appeal. The decision highlighted the importance of adherence to legal provisions and the equitable treatment of parties in tax matters.