2008 (2) TMI 873 - HC - Central Excise

Summary

Issues involved: Interpretation of notifications u/s 6/2006-C.E and 4/2006-C.E, Nil rate of duty for Bagasse Board, 8% rate of duty for wood free plain or pre-laminated particle or fibre-board, comparison with Maharashtra manufacturers, release of seized goods, furnishing bond for duty amount.

Interpretation of notifications u/s 6/2006-C.E and 4/2006-C.E: The judgment considered the notifications u/s 6/2006-C.E and 4/2006-C.E, specifically focusing on item No.82 providing Nil rate of duty for Bagasse Board and item No.87 referring to 100% wood free plain or pre-laminated particle or fibre-board. The entry "all goods" substituted the 8% rate of duty for the latter item, leading to a comparison with Maharashtra manufacturers.

Comparison with Maharashtra manufacturers: The petitioner highlighted the Nil rate of duty imposed on manufacturers of the same product in Maharashtra since June 2006. This comparison was crucial in the decision-making process, considering the notifications and previous court decisions.

Release of seized goods and furnishing bond: The judgment directed the respondents to release the seized goods under panchnama dated 7/8.2.2008, subject to the condition that the petitioner Company furnishes a bond for the duty amount leviable at the rate of 8%. The bond was required for the duty on stock cleared until the matter is decided based on the show cause notice dated 20.6.2007.

Clarification on interim stay: It was clarified that there was no interim stay against proceeding with the show cause notice and its adjudication. This clarification ensured that the legal process would continue without interruption despite the decision regarding the release of seized goods.