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2011 (4) TMI 1137 - AT - Central Excisestay application - pre-deposit of duty demand interest and penalty - Under the SSI exemption notification during the relevant period the first clearances in a financial year of value upto Rs. 1, 00, 00, 000/- were fully exempt from duty. During scrutiny of ER-3 return for the quarter ending March 2007 it was found that while their sales upto 18-1-2007 were of total value of Rs. 1, 00, 00, 000/- during the period from 19-1-2007 to 31-3-2007 they had cleared 8598.70 sq. mtrs. marble slabs of total value of Rs. 16, 38, 277/- on which duty amounting to Rs. 2, 64, 063/- was chargeable but this quantity had been cleared without payment of duty Held that - in the case of Aman Marble Industries Pvt. Ltd. (2003 - TMI - 46675 - SUPREME COURT OF INDIA) the marble slabs made out of marble blocks were not excisable and the same became excisable only w.e.f. 1-3-2006 when Chapter Note 6 was introduced in para 25 requirement of pre-deposit of duty demand interest and penalty is waived stay application is allowed
Issues:
Manufacture of Marble Slabs under Central Excise Duty, SSI exemption under Notification No. 8/03-C.E., Duty demand for marble slabs cleared without payment, Appeal against duty demand, Pre-levy stock of marble slabs, Waiver of pre-deposit requirement. Manufacture of Marble Slabs under Central Excise Duty: The appellant, a manufacturer of Marble Slabs chargeable to Central Excise Duty under sub-heading 2504.21, availed SSI exemption under Notification No. 8/03-C.E. The dispute arose when marble slabs were cleared without payment of duty during a specific period, leading to a show cause notice for duty demand, interest, and penalty issuance. Duty demand for marble slabs cleared without payment: A show cause notice was issued for duty demand on marble slabs cleared without payment during a specific period. The Assistant Commissioner confirmed the duty demand, interest, and imposed a penalty under Rule 25 of Central Excise Rules, 2002. The appellant contended that the cleared stock was manufactured prior to the levy of duty and should not be chargeable. Appeal against duty demand: The appellant's plea regarding the old stock of marble slabs cleared without payment of duty was rejected by the Assistant Commissioner and upheld by the Commissioner (Appeals). The appellant filed an appeal against this decision. Pre-levy stock of marble slabs: The appellant argued that the marble slabs cleared without payment were part of the stock manufactured prior to the levy of duty. They provided evidence of maintaining a daily stock account register showing the stock as on 1-3-2006. The appellant's contention was based on the principle that goods manufactured prior to the levy but cleared after are not chargeable to Central Excise Duty. Waiver of pre-deposit requirement: The Tribunal considered the submissions and evidence presented by both sides. It noted the existence of stock of marble slabs as on 1-3-2006, which had been cleared subsequently. Citing relevant judgments, including the Hon'ble Supreme Court's decision, the Tribunal found merit in the appellant's plea for waiver of the pre-deposit requirement. Consequently, the requirement of pre-deposit of duty demand, interest, and penalty was waived, and recovery was stayed pending the appeal's disposal. This detailed analysis of the judgment highlights the key issues involved, the arguments presented by both parties, and the Tribunal's decision based on the evidence and legal principles cited during the proceedings.
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