2005 (12) TMI 363 - AT - Central Excise

Summary

Issues: Finalization of assessed value, additions towards overheads, confirmation of differential duty demand, provisional assessment, settlement under KVSS scheme, challenge to additions worked out by cost auditors, pre-deposit for stay application.

In this case, the Appellate Tribunal CESTAT, Mumbai, heard arguments regarding the finalization of assessed value, additions towards overheads, and confirmation of a differential duty demand amounting to Rs. 12,58,41,646. The appellants contended that they had initially submitted provisional costs and later final costs, paying the differential duty accordingly. They claimed immunity from further demand under the KVSS scheme, arguing that no order for provisional assessment had been issued. However, the Tribunal found that a provisional assessment order had indeed been issued by the Assistant Collector. The Tribunal also noted that the settlement under the KVSS scheme was related to PME expenses, not overheads, which were the subject of the present demand. The appellants' challenge to the inclusion of overheads for the entire company and the additions calculated by the department's cost auditors were deemed suitable for detailed consideration during the appeal hearing.

Regarding the stay application, the Tribunal ruled that the appellants had not demonstrated a case for a complete waiver of pre-deposit nor had they shown financial hardship. As a result, the Tribunal directed the appellants to pre-deposit 25% of the disputed duty amount in cash and another 25% through a Bank Guarantee within four weeks. Compliance was to be reported by a specified date. Upon meeting these requirements, the pre-deposit of the remaining amount was waived for the duration of the appeal process. The judgment was pronounced on 6-12-2005 by Member (T) Chittaranjan Satapathy.