2013 (11) TMI 1625 - AT - Central Excise

Summary

Issues involved: Application for waiver of pre-deposit of duty and penalty u/s Rule 21 of Central Excise Rules, 2002.

Issue 1: Remission application and rejection

The applicant, engaged in the manufacture of Readymade Garments, filed a remission application u/r 21 of Central Excise Rules, 2002 after a fire incident destroyed finished goods. The jurisdictional Commissioner rejected the remission application, leading to confirmation of duty demands. The applicant argued that the rejection and duty recovery are separate proceedings, despite arising from the same fire incident. The applicant expressed financial hardship due to heavy losses post-fire.

Issue 2: Arguments and findings

The Revenue contended that the rejection of the remission application binds the applicant, as no appeal was filed against it. The Tribunal noted the fire incident, the rejection of remission, and subsequent duty confirmation. Since no appeal was made against the remission rejection, the Tribunal found the confirmation of demand valid. Considering financial hardship, legal principles, and revenue interests, the Tribunal directed the applicant to deposit 25% of the confirmed excise duty within eight weeks to stay recovery during the appeal.

This judgment highlights the importance of following legal procedures, the consequences of not appealing adverse decisions, and the balance between financial hardship and revenue interests in excise duty matters.