2006 (1) TMI 408 - AT - Central Excise

Summary

Issues:
Interpretation of Notification No. 43/2001-C.E. (N.T.) regarding pre-deposit of duty for appeal hearing.

Analysis:
The appellants were required to pre-deposit duty amount for the appeal hearing due to allegations of clearing duty-free inputs for further processing and export. The appellant's counsel argued that the actions did not violate the notification conditions as the final goods were indeed exported. It was highlighted that previous Tribunal judgments supported the view that such actions did not breach the notification.

The learned SDR contended that the Notification should be strictly interpreted, emphasizing that any violation would negate the benefit. However, after careful consideration, the Bench referred to past judgments establishing that exporting final products for further processing by another unit did not hinder the notification's benefits. Consequently, the stay application was accepted, granting a full waiver of the pre-deposit with no recovery allowed until the appeal's disposal.

Given the concise nature of the issue and the existence of relevant precedents, the matter was scheduled for an expedited hearing. The appellant's counsel was directed to provide a list of relevant judgments for the upcoming hearing date. The judgment was dictated and pronounced in an open court session.