2012 (2) TMI 602 - AT - Central Excise

Summary

Issues involved: Application to dispense with pre-deposit of duty confirmed for the period February 2005 to January 2010, along with penalty imposition.

Summary:
1. The appellant, a unit of M/s Haryana Vidyut Prasaran Nigam Ltd., was engaged in manufacturing galvanised steel parts of transmission towers. The demand comprised two parts:
- Approximately &8377; 2.00 crores confirmed for February 2005 to April 2007 due to a previous dispute resolved in their favor.
- About &8377; 4.13 crores for undervaluation of products cleared for job work from May 2007 to January 2010.

2. The appellant argued a bona fide belief in not paying duty due to past dispute resolution and entitlement to Notification No. 74/93. The Revenue contended duty liability under Chapter Note 3 to Chapter 73 from 2003 onwards.

3. The Tribunal found that the appellant had paid &8377; 3.86 crores out of the &8377; 4.13 crores demanded for undervaluation, thus dispensing with the need for further pre-deposit.

4. Regarding the &8377; 2.00 crores duty confirmed for February 2005 to April 2007, the Tribunal held the extended period of limitation was not applicable due to the ongoing dispute and the appellant's duty payments from May 2007 onwards. The Tribunal dispensed with the pre-deposit condition for this amount as well.

5. The pre-deposit of interest and penalty was also disposed of, with the stay petition being allowed accordingly.