2008 (12) TMI 683 - AT - Central Excise

Summary

Issues involved: Application for waiver of predeposit, duty demand confirmed, benefit of Notification No.4/2006-CE denied, penalty imposed, interpretation of Notification provisions.

Application for waiver of predeposit: After hearing both sides, the Tribunal decided to proceed with the appeal itself as the issue was covered by a previous decision. The duty demand was confirmed against the assessees by denying the benefit of Notification No.4/2006-CE, and a penalty of equal amount was imposed.

Interpretation of Notification provisions: The department contended that cement cleared in 50 kg bags to industrial/institutional consumers was not covered under the Notification. However, the Tribunal, in a previous case, accepted the contention that the benefit of the notification applied to goods cleared to such consumers. The Tribunal found that the impugned order was liable to be set aside as the relevant clarification issued by the CBEC supported the assessee's case. By following the ratio of the previous order, the Tribunal set aside the impugned order and allowed the appeal.

Conclusion: The Tribunal found in favor of the assessee based on the interpretation of the Notification provisions and set aside the duty demand and penalty imposed.