2013 (3) TMI 387 - AT - Central Excise

Pre-delivery inspection and free after sale charges added to the transaction value of the motor vehicles manufactured - assessee seeking waiver of pre-deposit of duty and interest - Held that - As the demand is confirmed on the same grounds as in the case of Skoda Auto India Pvt. Ltd. 2013 (3) TMI 85 - BOMBAY HIGH COURT therefore, in view of the order passed by the Hon ble Bombay High Court dated 12.9.2012, the pre-deposit of dues is waived for hearing of the appeal and recovery of the same is stayed during the pendency of the appeal.

Summary

Issues: Application for early hearing of stay application, waiver of pre-deposit of duty and interest

Application for Early Hearing of Stay Application:
The Revenue filed an application for early hearing of the stay application, which was dismissed as infructuous since the stay application was already listed for the day. This issue was resolved promptly, ensuring procedural efficiency.

Waiver of Pre-deposit of Duty and Interest:
The applicants, engaged in manufacturing motor vehicles, sought waiver of pre-deposit of duty amounting to Rs.1,27,74,843/- along with interest. The demand was based on adding charges for pre-delivery inspection and free after-sale services to the transaction value of the motor vehicles. Reference was made to a similar case involving Skoda Auto India Pvt. Ltd., where the Tribunal initially directed a 50% deposit of the confirmed duty. However, the Hon'ble Bombay High Court overturned this decision in Central Excise Appeal No.102 of 2012, instructing the Tribunal to hear the appeal on merits without insisting on pre-deposit. Given the parallel grounds in the present case and the Skoda case, the pre-deposit of dues was waived for the appeal hearing, and recovery was stayed during the appeal's pendency. The appeal was directed to be listed alongside another appeal for efficient management.

---