2009 (3) TMI 776 - AT - Central Excise

Summary

Issues:
1. Waiver of pre-deposit of duty and penalties under Section 11AC of the Central Excise Act, 1944.
2. Denial of exemption under Notification No. 6/2002-C.E. for PSC pipes used in water treatment plants.
3. Demand confirmation for drinking water supply schemes due to collected price including duty.

Analysis:
1. The Tribunal considered applications for the waiver of duty and penalties totaling Rs. 1,37,89,315/- along with penalties under Section 11AC of the Central Excise Act, 1944. The demand was confirmed for PSC pipes used in water treatment plants in Tamilnadu, denying exemption under Notification No. 6/2002-C.E. The Tribunal granted waiver of pre-deposit of Rs. 62,28,295/- based on a strong prima facie case established, referencing an earlier stay order in the assessee's case.

2. Regarding the second demand related to the drinking water supply schemes, the Tribunal found the demand prima facie unsustainable. It was noted that the clearance was granted upon the production of the required certificate as per the Notification's conditions. The Tribunal concluded that the assessee could not be deemed guilty of suppression or misdeclaration to evade duty payment. Consequently, the Tribunal granted waiver of pre-deposit for the second demand, including interest and penalties, and stayed the recovery pending the appeal.

3. The demand of Rs. 62,28,295/- was confirmed for the PSC pipes used in water treatment plants due to the denial of exemption under the relevant Notification. On the other hand, the demand of Rs. 75,61,020/- was confirmed for certain drinking water supply schemes as they did not meet the requirement of having a water treatment plant, as specified in the Notification. The Tribunal's detailed analysis considered the specific circumstances of each demand and the legal provisions to determine the applicability of duty and penalties.

This comprehensive analysis of the judgment highlights the Tribunal's considerations regarding the waiver of pre-deposit, denial of exemption, and confirmation of demands related to PSC pipes and drinking water supply schemes under the Central Excise Act, 1944.