2006 (9) TMI 471 - AT - Central Excise

Summary

Issues: Application for waiver of pre-deposit of duty and penalty under Rule 173Q read with Sec. 11A of the Central Excise Act.

In this case, the applicant sought waiver of pre-deposit of duty amounting to Rs. 21,59,348/- and penalty of Rs. 5 lakhs under Rule 173Q read with Sec. 11A of the Central Excise Act, which were upheld by the Commissioner (Appeals) in the impugned order. The matter pertained to the demand of Customs duty for not fulfilling the conditions of Notification No. 83/90-Cus., dated 20-3-90, regarding the use of melting scrap of iron and steel in electric arc or induction furnaces. The applicant argued that the demand was made under the wrong Act, as Customs duty cannot be demanded under the Central Excise Act. The tribunal noted that the demand should have been raised under the Customs Act and not the Central Excise Act. Despite a previous remand order, the tribunal found that the demand of duty under the Central Excise Act was incorrect. Consequently, the tribunal waived the pre-deposit of duty and penalty, staying the recovery pending the appeal's disposal.