2007 (11) TMI 507 - AT - Central Excise

Summary

Issues involved:
Stay petitions and appeals against Orders-in-Appeal regarding duty and penalty confirmation.

Analysis:
1. The appellants were required to pre-deposit a significant sum towards duty and penalty as per the impugned Orders-in-Appeal. The appeals and applications for dispensing with the pre-deposit were filed, challenging the duty and penalty amounts.

2. The appeals primarily revolved around the duty confirmation of Additional Excise Duty (Textiles & Textile Articles) and Additional Excise Duty (GSI) along with Education Cess. Penalties of Rs. 10,000 were imposed in each case.

3. The learned Advocate for the appellants argued that they had a strong case on merits. They highlighted relevant Notifications, especially No. 23/2003-C.E., dated 31-3-2003, to support their position. The issue centered on the liability to pay duty on goods cleared to the Domestic Tariff Area (DTA).

4. The Tribunal considered the contentions and examined the Notification in detail. It was noted that the appellants had paid duty in accordance with the relevant Notification provisions. The Tribunal found that the appellants had a strong case as the issue was previously upheld by the Commissioner (Appeals).

5. After careful consideration, the Tribunal ruled in favor of the appellants, granting a complete waiver of the pre-deposit of duty amount and penalties until the disposal of the appeals. Recovery proceedings of duty and penalty were also stayed pending the appeal's outcome.

This detailed analysis outlines the key arguments, legal provisions, and the Tribunal's decision regarding the duty and penalty disputes in the case.