2006 (2) TMI 427 - AT - Central Excise

Summary

Issues: Application for dispensing with pre-deposit of duty amount and personal penalty.

Analysis:
The appellant, engaged in manufacturing plastic Caps, Bottles, and Snap Off Cutters, sought exemption under the small scale exemption limit. Initially, they did not consider the clearance value of paper cutters, assuming they were exempt. Upon realizing there was no exemption for paper cutters, they reclassified them as Pencil Sharpeners to remain within the exemption limit.

Upon review, the Tribunal found that paper cutters and pencil sharpeners are distinct products. The paper cutter had an 8 cm blade with adjustable length attached to a plastic handle, while the pencil sharpener lacked such a blade and was solely for sharpening pencils. Consequently, the Tribunal concluded that the appellant lacked a prima facie case for an unconditional stay. The duty amount confirmed against the appellant was deemed manageable, and thus, the Tribunal directed the appellant to deposit the entire duty amount within four weeks, with a compliance report due on 27-3-2006. The penalty amount was waived, and its recovery stayed.

The judgment was pronounced in court by the Tribunal, with the decision favoring the respondent's position. The appellant was instructed to comply with the deposit requirements within the specified timeframe, while the penalty amount was exempted from immediate recovery. The Tribunal's decision was based on the distinct nature of paper cutters and pencil sharpeners, emphasizing the lack of a prima facie case for an unconditional stay.