2009 (2) TMI 680 - AT - Central Excise

Summary

Issues:
- Differential duty under Section 11A of the Central Excise Act, 1944
- Appropriate interest on the differential duty under Section 11AB of Central Excise Act, 1944
- Penalty under rules 173Q and 209 of Central Excise Rules, 1944
- Penalty on Managing Director under Rule 209A of Central Excise Rules, 1944
- Eligibility for the benefit of Notification No. 8/97-C.E. dated 1-3-1997
- Interpretation of permissions granted under Para 9.9(e) and Para 9.9(b) of the Exim Policy

Analysis:
The case involved applications for the waiver of pre-deposit amounts including differential duty, interest, and penalties under various sections of the Central Excise Act, 1944. The applicant, a 100% EOU, was exporting goods and clearing them to DTA under Deemed Exports. The applicant claimed eligibility under Para 9.9 of the New Import Export Policy and Handbook of Procedures. The Development Commissioner had granted permission under Para 9.9(e) for the clearance of goods. However, a dispute arose regarding the clearance value compared to the sanctioned value.

The main issue was the eligibility of the applicant for the benefit of Notification No. 8/97-C.E. dated 1-3-1997. The Tribunal found that the applicant was eligible for the benefit based on the permission granted by the Development Commissioner under Para 9.9(e) of the Exim Policy. The Tribunal noted that although the permission was not under Para 9.9(b) which allowed DTA sale up to 50% of the FOB value, the applicant's actions were in accordance with the law. The Tribunal emphasized that the legal question of whether the permission under Para 9.9(e) applied to clearances made under Para 9.9(b) required a detailed examination.

After considering submissions from both sides and reviewing the records, the Tribunal concluded that there was a prima facie case for waiving the pre-deposit amounts. The Tribunal allowed the application for waiver and stayed the recovery of the amounts until the appeal's disposal. It was ordered that no coercive measures should be taken during this period. The matter was scheduled for a hearing on a specified date.

In summary, the Tribunal focused on the applicant's eligibility for the benefit of a specific notification under the Central Excise Act and the interpretation of permissions granted under different paragraphs of the Exim Policy. The Tribunal leaned towards granting the waiver of pre-deposit amounts based on the applicant's compliance with the law and the permission received, pending further examination of the legal aspects involved in the case.