2007 (2) TMI 403 - AT - Central Excise

Summary

Issues:
1. Stay application regarding additional duty of Customs
2. Pre-deposit requirement for the first case
3. Denial of benefit under Notification No. 126/94 for iron safe
4. Waiver of pre-deposit for iron safe in the second case

Analysis:
1. The first issue pertains to the stay applications concerning the payment of additional duty of Customs. The appellant had cleared goods in the domestic market by paying additional duty of Customs under Notification No. 2/95-C.E. dated 4-1-95. The contention was that this duty was not payable as Central Excise duty had already been paid. However, the Commissioner noted that the appellants were required to discharge 50% of the additional Customs duty as per the notification. The tribunal found no merit in the appellant's case and directed them to pre-deposit the entire amount of Rs. 4,12,480 within three months, failing which the appeal would be dismissed.

2. In the second issue, the appellant was required to pre-deposit Rs. 12,236 in a stay application arising from Appeal No. 1104/06, as they were denied the benefit of Notification No. 126/94 for an iron safe. The appellant argued that the iron safe was essential for the safekeeping of diamonds and should be considered as capital goods. Despite the authorities rejecting the plea, the tribunal found the appellant's argument prima facie acceptable, stating that an iron safe is necessary for the safekeeping of diamonds. Consequently, the tribunal allowed the stay application, granting a waiver of the pre-deposit and staying the recovery of the amount.

In conclusion, while the first case required the appellant to pre-deposit the full amount of additional duty of Customs, the second case saw a waiver of pre-deposit granted for the iron safe based on the necessity of the safe for the protection of diamonds.