2009 (6) TMI 805 - AT - Central Excise

Summary

Issues:
1. Stay application against Order-in-Original dated 12-12-2008 confirming duty, interest, and penalty.
2. Examination of technical notes, certificates, and reports by the Commissioner.
3. Classification and excisability of the Fired Heater component.
4. Applicability of legal judgments cited by the Advocate.
5. Decision on pre-deposit waiver and penalty.

Analysis:
1. The stay application was filed against the Order-in-Original confirming duty, interest, and penalty. The Commissioner reduced the initial demand from Rs. 52,36,875 to Rs. 5.52 lakhs after examining technical documents and reports. The Commissioner concluded that the Special Cut Naphtha project was not chargeable to duty, but the components fabricated at the site, specifically the Fired Heater, were excisable under CETA '85 and leviable to duty at 15.75%.

2. The Commissioner meticulously reviewed the technical note, Chartered Engineer's certificate, and site visit report to determine the excisability of the components. The Commissioner found that the Fired Heater, fabricated at the site as an independent equipment, was distinct from its inputs and commercially identifiable. Citing a previous Tribunal judgment, the Commissioner classified the Fired Heater under a specific category and imposed duty accordingly.

3. The Advocate cited Supreme Court and Tribunal judgments on different subjects, but the Tribunal emphasized that the case at hand pertained to the excisability of the Fired Heater. The Tribunal highlighted that each case must be evaluated on its own merits, and the Commissioner's decision was based on a thorough examination of the matter, making the cited judgments not directly applicable to the present case.

4. Considering the facts and circumstances, the Tribunal directed the applicants to pre-deposit the duty amount within six weeks, with the penalty pre-deposit waived upon compliance. Failure to adhere to the directions would lead to the vacation of the stay and dismissal of the appeal without further notice. The Tribunal's decision was pronounced on 24-6-2009, ensuring a clear timeline for compliance and consequences of non-compliance.