2009 (5) TMI 698 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT, Mumbai issued a judgment in 2009 regarding a stay petition filed by applicants against an order passed by the Commissioner (Appeals). The applicants had classified Carbide Sludge under Chapter Heading 2811.90 of the CETA, 1985, chargeable to 16% ad valorem duty. The Commissioner (Appeals) observed that the applicants were selling the product at a minimum price of Rs. 2/- per kg, establishing its marketability. The Tribunal noted that the Honorable Supreme Court judgment cited by the applicants did not apply due to the confirmed marketability of the Sludge. The applicants were directed to pre-deposit Rs. 70,272 towards duty within six weeks, with non-compliance leading to vacation of stay and dismissal of their appeal. The stay petition was decided due to repeated adjournment requests by the applicants. The issue revolved around the excisability of Carbide Sludge from October 2001 to August 2006, with duty evasion being a key concern. The Tribunal's decision was based on the established marketability of the product, leading to the pre-deposit directive. The judgment was delivered by S/Shri A.K. Srivastava and Ashok Jindal, JJ., with representation by Shri S.S. Katiyar, SDR, for the Respondent. The order was pronounced in court following the decision.