2008 (9) TMI 837 - AT - Central Excise

Stay/Dispensation of pre-deposit - Valuation - Held that - The assessee has assessed the goods manufactured on their own behalf in terms of Rule 4(1) of the Central Excise Rules. Therefore, the question of reassessing those goods does not arise - the stay application is allowed granting waiver of pre-deposit and staying its recovery till the disposal of the appeal.

Summary

Issues:
Delay condonation for filing appeal, Central Excise duty and penalty assessment based on valuation method, applicability of judgments in similar cases, waiver of pre-deposit and stay of recovery pending appeal.

Delay Condonation:
The appellant sought condonation of a 3-day delay in filing the appeal, arguing that excluding Saturday and Sunday would make the delay non-existent. The Tribunal, after hearing both parties, condoned the delay.

Central Excise Duty Assessment:
The appellant, a pharmaceutical manufacturer, was directed to deposit Central Excise duty and penalty. The issue arose from the valuation method used by the appellant for Physician samples of own and Loan Licensee products. The Department disagreed with the valuation under Rule 8 of the Central Excise Valuation Rules and assessed based on goods cleared at the nearest point of time.

Applicability of Judgments:
The Chartered Accountant cited the Commissioner's previous order and judgments from the Mumbai Tribunal in support of the appellant's valuation method. The appellant argued that for goods manufactured on their behalf, duty was paid based on normal price under Section 4(1), while for Loan Licensee products, they followed the Ujagar Prints case principles. The Tribunal found the appellant's case strong, granting a stay on recovery until appeal disposal.

Waiver of Pre-deposit and Stay of Recovery:
Considering the substantial revenue involved and following previous Tribunal rulings, the Tribunal granted a waiver of pre-deposit and stayed recovery. The Commissioner's differentiation of judgments was noted, but the Tribunal found the appellant's valuation methods consistent with established principles. The appeal was scheduled for an expedited out-of-turn hearing due to the significant revenue implications.

This judgment addressed the delay condonation, Central Excise duty assessment based on valuation methods, the relevance of previous judgments, and the grant of waiver of pre-deposit and stay of recovery pending appeal. The Tribunal found in favor of the appellant, acknowledging the consistency of their valuation methods with established principles and granting a stay on recovery until the appeal's final disposal.