2007 (3) TMI 595 - AT - Central Excise

Summary

Issues:
1. Stay petition regarding waiver of pre-deposit of duty amount.

Analysis:
The appellant/applicant in this case procured certain inputs and directly sent them to a job worker following prescribed procedures outlined in Circular No. 265/99/96-CX dated 12-11-96 and Circular No. 33/33/94-CX dated 4-5-94, particularly para 3 of the latter circular. The appellant received duty paying documents for the goods dispatched to the job worker and recorded stock details and credit particulars in RG-23A, Part I, although they did not utilize them until the processed materials were received back after 9 months. The Tribunal noted that the appellant had a strong prima facie case in their favor based on the instructions of the Board mentioned above. Consequently, the Tribunal decided to waive the pre-deposit of the entire duty amount and stayed the recovery until the appeal is disposed of.

The Tribunal, after hearing both sides on the stay petition, acknowledged the appellant's adherence to the prescribed procedures for sending materials to the job worker and their timely receipt of duty paying documents. The Tribunal found that the appellant's actions were in line with the instructions provided by the Board, which supported their case for waiver of pre-deposit of duty amount. As a result, the Tribunal granted the appellant's request and stayed the recovery of the duty amount until the appeal is finally decided.

The stay application was disposed of accordingly, with the Tribunal granting the appellant's request for waiver of pre-deposit of duty amount and staying the recovery of the same until the appeal is heard and resolved. The Tribunal directed that the appeal would be scheduled for hearing in due course, following the decision on the stay application. The order was dictated and pronounced in open court, ensuring transparency and clarity in the proceedings.