2014 (11) TMI 1085 - AT - Central Excise

Non-compliance with ex-party stay order - appellant was directed to deposit the entire duty of ₹ 42,00,000/- involved in the appeal - appellant submitted that out of ₹ 42,00,000/-, an amount of ₹ 27,00,000/- is in respect of classification of Brahmi Amla Hair Oil which has already been held to be Ayurvedic product by the Tribunal and the balance amount of ₹ 15,00,000/- is in respect of correct classification of natural hair wash powder - appellants are ready to deposit 50% of the said amount as the contagious issue of classification is involved - Held that - the applicant is directed to deposit an amount of ₹ 7,50,000/- (Rupees Seven Lakhs and Fifty Thousand) within a period of six weeks from today, report compliance to Commissioner (Appeals), who would, after ascertaining compliance with the said order, decide the appeal on merits. - Stay petition disposed of

Summary

Issues: Non-compliance with ex-parte stay order, classification of products

Non-compliance with ex-parte stay order:
The judgment by the Appellate Tribunal CESTAT NEW DELHI involved a case where the Commissioner (Appeals) had dismissed the appellant's appeal due to non-compliance with an ex-parte stay order directing the appellant to deposit the entire duty amount of Rs. 42,00,000 involved in the appeal. The appellant argued that out of the total amount, Rs. 27,00,000 was related to the classification of Brahmi Amla Hair Oil, which had already been determined as an Ayurvedic product by the Tribunal in a previous case. The remaining Rs. 15,00,000 was for the correct classification of natural hair wash powder. The appellant expressed willingness to deposit 50% of the amount, acknowledging the contentious issue of classification at hand.

Classification of products:
Following the arguments presented, the Appellate Tribunal directed the appellant to deposit Rs. 7,50,000 within six weeks. This deposit was to be reported to the Commissioner (Appeals), who would then decide the appeal on its merits after confirming compliance with the order. The Tribunal disposed of the stay petition and the appeal in this manner, emphasizing the need for compliance with the deposit directive to proceed with the appeal process effectively.

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