2011 (10) TMI 650 - AT - Central Excise

Summary

Issues involved: Application for waiver of predeposit of duty, confirmation of demand for non-duty paid scrap, reasonable steps to ensure goods tally with description in invoices.

In the judgment by Appellate Tribunal CESTAT CHENNAI, the issue at hand was an application for waiver of predeposit of duty amounting to Rs. 1,07,900 along with interest and penalty. The demand was confirmed based on the assertion that the assessees had received non-duty paid scrap from specific suppliers and had not taken adequate steps to ensure that the goods matched the description in the invoices provided by the suppliers.

Upon careful consideration of the arguments presented by both sides, the Tribunal observed that a prima facie case for unconditional waiver had been established. It was noted that the assessees had indeed taken necessary precautions to verify the goods received, as the invoices clearly described the goods as MS scrap/MS wires. The Tribunal also highlighted that the duty paid nature was evident from the invoices, absolving the assessees of any fault in case of supplier fraud. This stance was supported by the Tribunal's previous ruling in Transpek Industry Ltd. Vs CCE Vadodara [2010 (249) ELT 91] and a decision by the Hon'ble Allahabad High Court in CC Vs CE Meerut Vs Muzaffarnagar Pipe Industries (P) Ltd.

Ultimately, the Tribunal granted the prayer for waiver and stayed the recovery of the disputed amounts pending the appeal, emphasizing the importance of the evidence presented in the invoices and the assessees' efforts to ensure compliance with duty payment regulations.