2007 (12) TMI 390 - AT - Central Excise

Summary

Issues:
1. Availing concessional rate of duty on readymade garments using silk fabric attracting nil rate of duty.
2. Bona fide belief regarding appropriate duty payment.
3. Disclosure of raw materials and duty payment to the Department.
4. Requirement of pre-deposit for appeal hearing.

Analysis:
1. The appellants availed a concessional rate of duty on readymade garments using silk fabric with nil rate of duty. The relevant Notification required duty paid fabric. The appellants argued that nil rate was appropriate. However, the Supreme Court clarified appropriate duty as some duty, not nil. The appellants sought waiver due to a bona fide belief in nil rate as appropriate duty.

2. The Revenue argued against the appellants' belief, citing the settled law by the Supreme Court predating the period in question. Allegations of suppression of facts regarding non-duty paid silk fabric were made. The Revenue pushed for duty and penalty pre-deposit, challenging the appellants' claim of bona fide belief.

3. The Tribunal found that the law was clear before the period in question, rejecting the appellants' bona fide belief defense. Regarding disclosure, the appellants had not provided sufficient evidence beyond registration forms. The Tribunal required documentary evidence to decide finally, directing a 25% duty pre-deposit within six weeks, with the balance waived during the appeal.

4. The Tribunal accepted the appellants' offer for pre-deposit, setting a deadline for compliance. The decision aimed to balance the need for pre-deposit with the appellants' request for time. Compliance with the pre-deposit condition would allow waiver of the remaining duty and penalty during the appeal process.