2008 (1) TMI 778 - AT - Central Excise

Summary

Issues: Stay of order for non-compliance under Section 35F of Central Excise Act for non-deposit of Rs. one lakh.

In this case, the appellants/assessee sought a stay of the order of the Commissioner (Appeals) dated 23-8-2000, which dismissed their appeal for non-compliance under Section 35F of the Central Excise Act due to non-deposit of Rs. one lakh. The Tribunal focused on whether a prima facie case justifying waiver of pre-deposit under Section 35F was established before the Commissioner. The Commissioner did not delve into the merits of the case but rather considered whether the appellants were entitled to exemption under a specific notification related to M. S. Pipes manufactured by them and cleared to PHED, Rajasthan during a specific period. The appellants argued that the certificate issued by the Collector and Distt. Magistrate, along with an additional certificate from the Executive Engineer, fulfilled the conditions of the notification, but their claim was rejected based on a hyper-technical view. The Tribunal found that the appellants had a prima facie case in their favor and concluded that the Commissioner should have granted full waiver of the amount. Consequently, the Tribunal set aside the previous order directing pre-deposit of Rs. one lakh and the final order dismissing the appeal for non-compliance, remanding the matter back to the Commissioner (Appeals) for a decision on the appeal's merits without requiring any pre-deposit. The appeal was disposed of accordingly.