2009 (8) TMI 949 - AT - Central Excise

Summary

Issues involved: Application for modification of pre-deposit order u/s Central Excise duty and customs duty.

Central Excise duty: The appellant sought modification of pre-deposit order citing Notification 6/2000-C.E. and Notification No. 18/2000-C.E. The appellant argued that the demand of Central Excise duty would be reduced significantly if these notifications were considered. However, the Tribunal was not convinced by the arguments and upheld the pre-deposit order of Rs. 35 lakhs, of which Rs. 10 lakhs had already been deposited. The appellant was directed to deposit the balance amount of Rs. 25 lakhs within 4 weeks due to financial hardships.

Customs duty: Regarding the pre-deposit order of Rs. 15 lakhs towards customs duty, the appellant relied on a Tribunal decision exempting duty on inputs for final products in a similar case. The Tribunal found merit in this argument and granted waiver of pre-deposit and stay of recovery for the Rs. 15 lakhs amount. The earlier stay order was modified accordingly.

Compliance: The Tribunal ordered the appellant to report compliance by a specified date, failing which the order would stand recalled with consequences.