2011 (1) TMI 1442 - AT - Central Excise

Summary

Issues involved: Stay petition for waiver of pre-deposit of duty and penalty u/s Notification No. 89/95 dated 18.05.1995.

The Appellate Tribunal CESTAT Bangalore, comprising M.V. Ravindran, Judicial Member, and P. Karthikeyan, Technical Member, heard a stay petition filed for the waiver of pre-deposit of duty amounting to Rs. 29,00,532/- along with applicable interest and penalty of Rs. 29,00,532/-. The demand of duty arose as the appellant wrongly availed the benefit of Notification No. 89/95 dated 18.05.1995 for waste products generated during the manufacture of Rice Bran Oil. The Tribunal noted a similar case precedent where it was held that waste products arising during the manufacturing process are eligible for the said notification. Consequently, the Tribunal found that the appellant established a prima facie case for the waiver of pre-deposit, allowing the application and staying the recovery until the appeal's disposal.

Conclusion: The Tribunal allowed the waiver of pre-deposit of duty and penalty u/s Notification No. 89/95 dated 18.05.1995, based on the appellant's prima facie case and precedent set in a similar case, staying the recovery until the appeal's final disposal.