2009 (8) TMI 1004 - AT - Central Excise

Summary

Issues involved: Stay application against waiver of pre-deposit of duty amount and penalty under Rule 25 of Central Excise Rules, 2002 based on eligibility for Notification No. 8/2003-C.E.

The judgment pertains to a stay application challenging the waiver of pre-deposit of duty amount and penalty under Rule 25 of Central Excise Rules, 2002. The issue at hand revolves around the eligibility of the applicant for the benefit of Notification No. 8/2003-C.E., dated 1-3-2003, due to the operation of two factories in different states. The contention raised is that the unit in Himachal Pradesh produced exempted products, which should not be factored into the value of goods manufactured in Andhra Pradesh.

Upon hearing both parties and examining the records, the Tribunal observed that the demand confirmation stemmed from the applicant's alleged ineligibility for the benefits under Notification No. 8/2003-C.E. Specifically, the provisions of clause (vii) of Para 2 of the said Notification were found to be applicable in the present case. Consequently, the Tribunal opined that the applicant failed to establish a prima facie case for a complete waiver of the pre-deposit amounts. Therefore, the Tribunal directed the applicant to pre-deposit the entire duty amount of Rs. 3,61,218 within eight weeks and report compliance by 3rd November 2009. Subsequent to this compliance, the pre-deposit of the remaining amounts involved in the matter was waived, and the recovery thereof stayed pending the appeal's disposal. Failure to comply with this order would lead to the dismissal of the appeal as per Section 35F of the Act.