2008 (4) TMI 605 - AT - Central Excise

Summary

Issues:
Stay applications filed against Order-in-Original Nos. 5 & 6/2007-C.E. dated 17-5-2007 passed by the Commissioner of Central Excise, Cochin Commissionerate.

Analysis:
The appellants were required to pre-deposit specific amounts including duty, interest, and penalties as per the impugned order. The dispute arose from the classification of the appellants' activity as manufacturing under notification 6/2002. The appellants argued they qualified for the benefit under Serial No. 212, while the department contended they fell under entry no. 214. The Tribunal noted that the appellants received duty-paid chassis from KSRTC and only built bodies on them without taking credit for the duty paid. The Tribunal found merit in the appellant's case under Serial No. 212, which exempts vehicles manufactured from duty-paid chassis without taking credit. The Tribunal acknowledged the distinction between the two entries and favored the appellant's interpretation.

The department's position was that the appellants should be covered by entry no. 214, which pertains to motor vehicles manufactured by a different entity than the chassis manufacturer. However, the Tribunal found substance in the appellant's argument for choosing the more beneficial provision when faced with two conflicting entries. Consequently, the Tribunal inclined towards granting a full waiver of the pre-deposit of duty, penalties, and interest due to the significant revenue involved. The Tribunal stayed further recovery proceedings pending the appeal's final decision, scheduled for a later date.

In conclusion, the Tribunal's decision favored the appellant's interpretation under Serial No. 212 over the department's assertion of falling under entry no. 214. The Tribunal granted a waiver of the pre-deposit due to the substantial revenue implications and stayed recovery proceedings until the appeal's resolution.