2006 (1) TMI 502 - AT - Central Excise

Summary

Issues:
1. Demand of duty and penalty imposed on the appellants for pre-stressed concrete pipes clearance.
2. Interpretation of the condition for exemption under Notification 6/02 regarding the certificate signed by the District Collector.
3. Comparison with previous Tribunal decisions regarding acceptance of certificates signed by subordinates.
4. Allegation of duty collection from customers without remittance and absence of demand under Section 11D.

Analysis:
1. The judgment addresses the demand of duty amounting to Rs. 8,40,619/- and a penalty of Rs. 3,000/- imposed on the appellants for clearing pre-stressed concrete pipes to L&T Ltd. The lower authorities based their decision on the denial of exemption under Notification 6/02, which required a specific certificate signed by the District Collector for duty exemption.

2. The key issue revolves around the interpretation of the certificate requirement under Notification 6/02. The certificate submitted by the appellants was signed by a subordinate of the District Collector, not the Collector himself. The lower authorities deemed this as an "infirmity" leading to the non-fulfillment of the condition for duty exemption, resulting in the demand of duty and penalty.

3. The appellants argued that certification by the office of the District Collector should suffice to meet the condition. They cited previous Tribunal decisions, including CCE, Vadodara v. Lyphin Chemicals and CCE, Rajkot v. Jupiter Cement Industries Ltd., where certificates signed by deputies or subordinates were accepted by the Tribunal. The Tribunal acknowledged these precedents, indicating a prima facie case in favor of the appellants.

4. Additionally, the Respondent raised concerns about the appellants collecting duty from customers but allegedly not remitting the same to the Exchequer. Despite this allegation, no demand under Section 11D was raised against the appellants in this case. Considering the arguments and precedents presented, the Tribunal decided to waive the pre-deposit and stay the recovery of the duty and penalty amounts pending further proceedings.

This comprehensive analysis of the judgment highlights the legal intricacies involved in the issues addressed by the Appellate Tribunal CESTAT, Chennai, providing a detailed understanding of the case and its implications.