2012 (8) TMI 599 - AT - Central Excise

Manufacture of sugar - by-product bio-compost came into existence which is being cleared by the respondents without payment of duty Held that - Demand of amount of 8% in respect of Bio-compost is set aside - pre-deposit of whole of the amount of penalty is waived.

Summary

Issues: Appeal against order passed by Commissioner (Appeals) regarding duty payment on bio-compost clearance.

Analysis:
The Appellate Tribunal, CESTAT, New Delhi, heard an appeal by the Revenue against an order passed by the Commissioner (Appeals) concerning the clearance of bio-compost by the respondents without duty payment. The respondents, engaged in sugar manufacturing, were directed to pay 8% of the sale price of the bio-compost. However, the Commissioner (Appeals) set aside this order. The Tribunal noted that a similar issue was decided in favor of the respondents in a previous case. Referring to the earlier decision involving E.I.D. Parry (India) Ltd., where the demand for 8% duty on bio-compost was set aside, the Tribunal waived the penalty amount pre-deposit. The Tribunal upheld the decision in the E.I.D. Parry (India) Ltd. case and set aside the demand for bio-compost sale, leading to the allowance of the appeal.

The Departmental Representative (DR) for the respondents mentioned that appeals were filed in higher courts against the Tribunal's decision in the E.I.D. Parry (India) Ltd. case and the present order. However, there was no stay on the operation of the Tribunal's order. Given that the issue was previously decided in favor of the respondents and considering the absence of any stay on the Tribunal's order, the Tribunal found no grounds to interfere with the Commissioner (Appeals) order. Consequently, the appeal filed by the Revenue was rejected.