2008 (5) TMI 495 - AT - Central Excise

Summary

Issues:
1. Pre-deposit requirement under Section 35F of Central Excise Act.
2. Leviability of Central Excise Duty on PCC poles.

Analysis:
1. The judgment deals with the requirement of pre-deposit under Section 35F of the Central Excise Act. The appellant was asked to pre-deposit a specific amount towards basic excise duty, education cess, and penalties to maintain the appeal. An application for waiver of pre-deposit was filed. The tribunal granted a full waiver of pre-deposit of duty until the appeal's disposal due to doubts regarding the applicability of a notification providing exemption. The tribunal referred the case to a Larger Bench to determine if State Electricity Boards can claim exemption under the relevant notification.

2. The dispute in the case revolves around the leviability of Central Excise Duty on PCC poles. The appellant claimed total exemption under Notification No. 74/93-C.E. The tribunal considered a previous judgment and noted that State Electricity Boards might not be eligible for exemption under the notification as they are not considered 'Departments' of the government. Despite reservations about the correctness of the previous decision, the tribunal granted a full waiver of pre-deposit based on the precedent. The case was referred to a Larger Bench to clarify whether State Electricity Boards qualify as departments of the State Government for exemption purposes.

This judgment highlights the importance of pre-deposit requirements in maintaining appeals under the Central Excise Act and the complexities surrounding the interpretation of exemption notifications, especially concerning entities like State Electricity Boards. The decision to refer the case to a Larger Bench demonstrates the tribunal's commitment to resolving legal uncertainties for proper application of tax laws.