2008 (8) TMI 762 - AT - Central Excise

Summary

Issues:
1. Applicability of exemption under notification No. 115/75 for by-products.
2. Duty liability on refined oil.
3. Pre-deposit requirement.
4. Stay application.

Analysis:
1. The appellant contended that they were not amalgamated with a job worker during the relevant period, but later amalgamated with the job worker by a High Court order. The dispute related to duty and cess on by-products obtained during the refining process. The appellant claimed benefit under notification No. 115/75 for the by-products and relied on various case laws to support their contention. The Tribunal found that the issue required a detailed examination at the final hearing. However, prima facie, the appellants were deemed entitled to the benefit of the said notification. They argued that a previous order regarding exemption for by-products of the amalgamated company had not been appealed against and had attained finality. The Tribunal, considering the merits of the case, ordered a complete waiver of the duty demanded, penalty imposed, and interest until the appeal's decision, even after 180 days. The Tribunal noted that the appellants had a strong case on merits, leading to the waiver of pre-deposit amounts.

2. The appellants argued that as the duty on the refined oil had already been paid when it became dutiable, there was no duty liability remaining. The Tribunal, after careful consideration, found that prima facie, the appellants had a strong case on merits. Consequently, the Tribunal ordered a complete waiver of the duty demanded, penalty imposed, and interest till the appeal's decision, even after 180 days. The Tribunal cited the decision in CCE, Ahmedabad v. Kumar Cotton Mills Pvt. Ltd. to support the waiver of pre-deposit amounts and the continuation of the stay until the appeal's disposal.

3. The Tribunal, after considering the contentions and case laws presented by both sides, found that the appellants had a strong case on merits regarding the applicability of exemption under notification No. 115/75 for the by-products. Consequently, the Tribunal ordered a complete waiver of the pre-deposit amounts demanded, including duty, penalty, and interest, even after the lapse of 180 days. The Tribunal relied on the decision in CCE, Ahmedabad v. Kumar Cotton Mills Pvt. Ltd. to support the waiver and continuation of the stay until the appeal's disposal.

4. The Tribunal allowed the stay application, considering the appellants' strong case on merits and the waiver of the duty demanded, penalty imposed, and interest until the appeal's decision, even after 180 days. The Tribunal ordered a complete waiver of the pre-deposit amounts demanded, citing the decision in CCE, Ahmedabad v. Kumar Cotton Mills Pvt. Ltd. to support the continuation of the stay until the appeal's disposal.