2007 (3) TMI 445 - AT - Central Excise

Summary

Issues:
1. Modification of stay orders directing pre-deposit of confirmed amounts.
2. Interpretation of Central Board of Excise and Customs Circular regarding classification of handmade biris packed with wrappers/labels manufactured without aid of machines.
3. Binding nature of Board's Circular on Revenue.
4. Applicability of Section Note and Chapter Note in relation to Board's Circular and previous judicial rulings.

Analysis:
1. The appellants filed Miscellaneous Applications seeking modification of stay orders requiring pre-deposit of confirmed amounts. They relied on a Circular issued by the Central Board of Excise and Customs clarifying the classification of handmade biris packed with wrappers/labels made without aid of machines under Chapter Heading 2403 10 31. The appellants argued that duty liability had been discharged, thus no need for differential duty payment. The matter was scheduled for final hearing, and the appellants requested a waiver of pre-deposit.

2. The Departmental Representative contended that the Board's Circular contradicted Section Note, Chapter Note, and previous judicial decisions. However, the appellants argued that the Circular was binding on the authority, citing a Supreme Court ruling in Collector of Central Excise v. Dhiren Chemical Industries. The Tribunal considered the submissions and noted that the Circular specified the classification of handmade biris, supporting the appellants' position that pre-deposit was unnecessary due to discharged duty liability.

3. The Tribunal acknowledged the binding nature of the Board's Circular on Revenue, as established in previous judicial decisions. In light of the Circular clarifying the classification of handmade biris, the Tribunal allowed the Miscellaneous Applications, recalling the stay orders requiring pre-deposit. It was decided that no recovery of amounts would occur until the appeals were disposed of, given the significant revenue implications. The appeals were expedited for out-of-turn hearing on a specified date.

4. The Tribunal's decision was based on the binding nature of the Board's Circular, overriding any potential conflicts with Section Note, Chapter Note, or previous judicial rulings. The judgment emphasized the importance of the Circular in determining the classification of handmade biris and the subsequent waiver of pre-deposit based on the discharged duty liability. The decision aimed to ensure a fair resolution of the matter, considering the substantial revenue implications involved.