2006 (6) TMI 393 - AT - Central Excise

Summary

Issues:
Application for waiver of pre-deposit of total duty and penalty.

Analysis:
The applicants filed an application seeking waiver of pre-deposit of total duty and penalty amounting to Rs. 5,87,302/- each. The demand was upheld due to the applicants receiving advances as trade deposit/security deposit from buyers and development charges from foreign buyers, which were not included in the assessable value of the goods. The Adjudicating Authority confirmed that development charges were indeed received from foreign buyers. However, the applicants argued that the exported goods are duty-free, and for goods cleared to customers without any advance, they issued credit notes for interest after duty payment. They claimed to have paid duty at the same rate for goods cleared to customers with trade deposit/security deposit, resulting in receiving less price.

Considering the circumstances, including the fact that development charges were received from foreign buyers for duty-free exported goods and the applicants paid duty at the same rate for goods cleared to customers with trade deposit, the Tribunal found a strong prima facie case in favor of the applicants. Consequently, the Tribunal decided to waive the pre-deposit of the entire duty and penalty amount. The stay application was allowed, and the decision was dictated and pronounced in open court by the Vice-President of the Tribunal.