2008 (11) TMI 686 - HC - Central Excise

Summary

Issues involved: Department's failure to take instruction, waiver of pre-deposit by Appellate Tribunal, interpretation of Notification No.89/95-CE, absence of substantial question of law.

The High Court noted that the department failed to take any instruction on multiple adjourned dates, leading to delays in the proceedings. Despite granting time to the department, no one appeared on their behalf, resulting in further adjournments. A letter produced later indicated that no clearance had been received by the High Power authority, causing additional delays in the case.

The judgment highlighted the order passed by the Appellate Tribunal, which granted a waiver of pre-deposit based on the merits of the case. The Tribunal's order detailed the appellant's use of duty paid iron and steel products in manufacturing exempted railway wagons, along with the recycling of waste and scrap within the factory. The Tribunal's prima facie view favored the appellants, stating that they had a good case on merits. The department did not challenge this order at the time, leading the High Court to dismiss the appeal and application, as no substantial question of law was found to be involved.

The interpretation of Notification No.89/95-CE was crucial in the case, as the appellants claimed exemption for waste and scrap used in manufacturing wagons. The Revenue contended that the notification did not apply due to the appellants also manufacturing dutiable wagons. However, the appellants argued that they proportionately paid duty on waste and scrap used for dutiable wagons. This interpretation played a significant role in the Tribunal's decision to grant a waiver of pre-deposit.

Ultimately, the High Court dismissed the appeal and application, stating that no substantial question of law was present. As a result, permission from the High Power Committee, to which the matter was adjourned multiple times, was deemed unnecessary. All parties were instructed to act on a xerox signed copy of the order, and urgent certified copies were to be provided upon application and compliance with formalities.