2013 (12) TMI 1563 - AT - Central Excise

Summary

Issues involved: Application for waiver of predeposit of duty u/s Central Excise Tariff Act, 1985 for clearance to Special Economic Zone without payment of duty.

Summary:
The applicant, engaged in the manufacture of industrial alcohol and chemicals, filed an application for waiver of predeposit of duty amounting to Rs. 1,19,665/- along with interest and penalty of Rs. 10,000. The demand of duty arose due to the clearance of Acetic Acid, Ethyl Acetate, and Anhydride to a Special Economic Zone without payment of duty. The adjudicating authority noted that duty should be paid on intermediary products used in the factory for manufacturing the final products, as the final product is exempted. The applicant's advocate referred to a previous Tribunal stay order in their own case, where unconditional stay was granted.

The Revenue representative argued that Notification 65/95 does not allow exemption for clearances to SEZ, emphasizing that notifications should be strictly interpreted as per decisions of the Hon'ble Supreme Court. After considering both sides, the Tribunal found that in the applicant's own previous case, unconditional stay was granted on the same issue. The Tribunal cited previous decisions where exports to SEZ were not considered as exempted goods, and pre-deposit was waived in similar cases. Consequently, the Tribunal waived the requirement of pre-deposit in the current case pending the appeal's disposal, following the precedent set by previous decisions. The predeposit of duty, interest, and penalty was waived, and the recovery was stayed until the appeal's final disposal. The stay application was allowed, and the decision was pronounced in open court.