2009 (8) TMI 1007 - AT - Central Excise

Summary

Issues:
- Challenge against waiver of pre-deposit of duty and penalty amounts under Notification No. 64/95-C.E.
- Interpretation of conditions for availing exemption under the notification.
- Application of precedent judgments in similar cases.
- Decision on stay petition and recovery of amounts pending appeal.

Analysis:

The judgment in the present case revolves around a challenge against the waiver of pre-deposit of duty and penalty amounts under Notification No. 64/95-C.E. The applicant, a manufacturer of electrical items, supplied goods to M/s. Mazagon Dock Limited (MDL) for the construction of warships for the Indian Navy. The dispute arose as the applicant had not supplied the items directly to the Indian Navy or Coast Guard, leading to the denial of exemption benefits.

The applicant contended that they fulfilled the conditions of the notification by supplying goods for the construction of warships for the Indian Navy and submitting a certificate from a designated officer. The Revenue, however, argued that the goods should have been supplied directly to the Indian Navy or Coast Guard, citing the decision of the Hon'ble Supreme Court in the case of Leader Engineering Works.

Upon careful consideration, the Tribunal found that the goods supplied to MDL, authorized for warship construction, met the conditions of the notification. Referring to a precedent case, the Tribunal held that the issue was similar to the one in CCE v. ABG Shipyard. Consequently, the Tribunal concluded that the applicant established a prima facie case for the waiver of the pre-deposit amounts. Therefore, the application for waiver was allowed, and the recovery of the amounts was stayed pending the disposal of the appeal.

In summary, the judgment analyzed the interpretation of the exemption conditions under Notification No. 64/95-C.E., applied relevant precedent judgments, and granted the stay petition for the waiver of pre-deposit amounts pending appeal, based on the fulfillment of notification requirements by the applicant.