2012 (5) TMI 657 - AT - Central Excise

Summary

Issues involved: Application for waiver of pre-deposit of duty, interest, and penalty u/s Rule 7 of the Valuation Rules for goods cleared from depot.

Summary:
The applicant filed an application for waiver of pre-deposit of duty, interest, and penalty amounting to Rs. 80,814 concerning the valuation of goods cleared from the depot. The dispute arose due to the application of Rule 7 of the Valuation Rules, which states that the value of excisable goods cleared from a depot shall be based on the normal transaction value of goods sold from such places at or about the same time. The applicant argued that since some goods were sold to independent wholesale buyers at the factory gate and some were cleared to the depot, the sale from the depot should not be considered, making Rule 7 inapplicable.

The Tribunal noted that the appellants had cleared goods both from the factory gate and the depot. Considering the provisions of Rule 7, the Tribunal found that the applicant had not established a case for total waiver. Consequently, the applicants were directed to deposit Rs. 40,000 within six weeks. Upon this deposit, the pre-deposit of the remaining duty, interest, and penalty would be waived, and recovery stayed during the appeal process. Compliance was required to be reported by 30.7.2012.