2006 (3) TMI 426 - AT - Central Excise

Summary

Issues: Dispute over denial of SSI benefit for goods manufactured without a brand name; Financial stringency leading to hardship in pre-deposit under Section 35F.

In this judgment by the Appellate Tribunal CESTAT, Mumbai, the dispute revolved around the denial of Small Scale Industries (SSI) benefit for goods manufactured without a brand name. The appellant contested the denial, citing previous tribunal decisions and a CBEC Circular to support their claim. The Revenue had demanded duty, penalty, and interest under relevant sections of the Central Excise Act, 1944. The appellant argued that the issue was covered in their favor based on the absence of a brand name on the goods and the circumstances surrounding the case, including financial stringency. They highlighted that the brand name in question belonged to a different entity, which was clarified through various tribunal decisions and the CBEC Circular. The appellant also pointed out that they had informed the department about the brand name registration process, indicating that the duty demand for the specified period might be time-barred. Consequently, the tribunal found merit in the appellant's arguments and granted a full waiver of the pre-deposit and stay pending the regular hearing of the appeal, thereby disposing of the application in favor of the appellant. The judgment was pronounced on 8-3-2006.

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