2006 (6) TMI 233 - AT - Central Excise

Summary

Issues involved: Application for waiver of predeposit and stay of recovery in relation to duty amount of Rs. 6,250.

The judgment pertains to an application seeking waiver of predeposit and stay of recovery regarding a duty amount of Rs. 6,250. Despite no representation for the applicant, the Tribunal proceeded to examine the records and heard the learned SDR. The applicant, a 100% EOU processing granite polished slabs, had a consignment involved in a road accident enroute to Chennai, resulting in damaged materials. The damaged material was taken back to the factory under intimation to the Central Excise officers. Although the goods were cleared from the factory but not exported, the Department treated the clearance as one made to DTA, leading to the demand of duty. The original authority and the first appellate authority confirmed this demand, but the Tribunal noted that the lower authorities did not adequately consider the submissions of the assessee. The Tribunal observed that duty could only be demanded upon clearance from the factory, not on materials found within the factory. As the appellants presented a prima facie case against the demand, the Tribunal granted waiver of predeposit and stay of recovery concerning the duty amount. The judgment emphasized the importance of proper application of excise duty regulations and the need for thorough consideration of submissions by authorities in such matters.