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2008 (11) TMI 466 - AT - Central Excise
Issues:
1. Dispensation of pre-deposit of disputed amount and penalty. 2. Classification of "Soft Drink Concentrate" under Heading 2106 90 19 or 2106 90 99. 3. Consideration of Modvat credit and cum-duty realization. 4. Direction for depositing a reduced amount and compliance timeline. 5. Opportunity for early hearing applications due to pending appeals. Issue 1: Dispensation of pre-deposit and penalty The applicant sought dispensation of pre-deposit of the disputed amount of Rs. 21,02,607/- and a penalty of Rs. 2 lakhs. The Tribunal, after hearing both sides, found the duty confirmed against the appellant for classifying their product "Soft Drink Concentrate" under Heading 2106 90 19, contrary to the appellant's claim of classification under Heading 2106 90 99. The Tribunal observed that "Soft Drink Concentrate" appeared under Heading 2106 90 19 by name, leading to no prima facie case in favor of the appellant. Issue 2: Classification of "Soft Drink Concentrate" The Tribunal referenced an earlier order in the same appellant's case, directing a deposit based on the plea for entitlement of Modvat credit and cum-duty realization. The appellant claimed that with these benefits, the duty amount would reduce to around Rs. 13 lakhs. Considering this plea and the earlier stay order, the Tribunal directed the appellant to deposit Rs. 13 lakhs within six weeks and report compliance by a specified date. Due to the classification issue's recurring effect and pending appeals before lower authorities, both sides were given the opportunity to file early hearing applications. This judgment by the Appellate Tribunal CESTAT, Ahmedabad, highlighted the importance of correct classification in disputes, the consideration of benefits like Modvat credit, and the procedural aspects of depositing disputed amounts. The Tribunal's decision emphasized adherence to classification rules and the significance of complying with directives based on earlier orders and pleas presented during the proceedings.
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