2006 (6) TMI 409 - AT - Central Excise

Summary

Issues:
1. Consideration of financial hardships for waiver of predeposit and stay of recovery.
2. Classification of "Strap Plap" under Chapter 64 of the CETA Schedule.

Analysis:

Issue 1:
The Appellate Tribunal, after hearing submissions from both parties, revisited the plea of financial hardships raised by the appellants. The appellants had faced challenges such as power supply disconnection leading to factory inactivity, inability to make EPF remittances due to financial constraints, and financial difficulties exacerbated by rising raw material prices. The appellants also cited a recent Supreme Court judgment's obiter dictum as relevant to their case. The Tribunal acknowledged the hardships faced by the appellants and decided to dispose of the appeals early, considering the new developments and the interests of the Revenue. The Tribunal modified the stay order, allowing the appeals to proceed to final hearing without the need for further deposit.

Issue 2:
The Tribunal examined the argument put forth by the appellants' counsel regarding the classification of "Strap Plap" as part of Hawai chappals under Chapter 64 of the CETA Schedule. Despite the appellants' reliance on the Apex Court's judgment, the Tribunal found no support in the said judgment for classifying "Strap Plap" as claimed by the appellants. The Tribunal concluded that the Apex Court's judgment did not favor the appellants' classification argument. Consequently, the Tribunal did not grant the waiver of predeposit and stay of recovery sought by the appellants based on this classification issue.

In summary, the Tribunal considered the financial hardships faced by the appellants but found no support for the classification argument regarding "Strap Plap" under Chapter 64 of the CETA Schedule. The Tribunal decided to proceed with the appeals, modifying the stay order for an early disposal of the case without requiring further deposit for the final hearing.