2009 (5) TMI 706 - AT - Central Excise

Summary

Issues:
- Stay application against waiver of pre-deposit of demand, interest, and penalty under Central Excise Act, 1944.
- Classification of product "ducts" made from Aluminium sheets under Chapter No. 7604.21 in the CET, 1985.
- Comparison with a previous Tribunal decision regarding "ducts" made from GI sheets.
- Determination of whether the use of GI sheet or Aluminium sheet in duct fabrication constitutes manufacturing for duty imposition.

Analysis:
The judgment addressed a stay application contesting the waiver of pre-deposit amounts under the Central Excise Act, 1944. The demand, interest, and penalty totaling Rs. 40,021 were in question. The dispute revolved around the classification of "ducts" manufactured from Aluminium sheets under Chapter No. 7604.21 in the CET, 1985. The appellant argued that a previous Tribunal decision (Final Order Nos. 1293 and 1294/2007) supported their case, which had been upheld by the Supreme Court against a Revenue appeal.

The Departmental Representative contended that the previous case involved "ducts" made from GI sheets, while the current case pertained to Aluminium sheets. After careful consideration, the Tribunal concluded that the use of GI or Aluminium sheets in duct fabrication for air conditioning did not amount to manufacturing. Citing the appellant's own case precedent, it was determined that no duty liability existed. Consequently, the Tribunal granted a prima facie case for the waiver of pre-deposit amounts, allowing the application and staying the recovery pending appeal disposal.

In summary, the judgment clarified the classification of products, the interpretation of manufacturing activities, and the applicability of duty liabilities under the Central Excise Act, 1944. The decision highlighted the importance of precedent and factual distinctions in determining tax obligations, ultimately favoring the appellant's argument based on established case law and manufacturing principles.