2013 (4) TMI 620 - AT - Central Excise

Application for waiver of pre-deposit of duty, interest and penalties - manufacture of sugar during which - bagasse emerges Appellant availing credit in respect of the common inputs used in the manufacture of excisable goods and exempted goods Held that - The Tribunal in the case of Indian Potash Ltd vs CCE, 2012 (12) TMI 347 - CESTAT, NEW DELHI set aside the demand which was confirmed on the same grounds pre-deposit of the remaining dues is waived and recovery thereof stayed for hearing of the appeals.

Summary

Issues:
Application for adjournment due to a covered issue, waiver of pre-deposit of duty, interest, and penalties for manufacture of sugar and molasses, availing credit for common inputs, demand for payment of exempted goods, Tribunal's previous decision setting aside similar demand, waiver of remaining dues, stay for appeal hearing, listing of appeals for hearing, allowance of stay petitions.

Analysis:

1. The judgment begins by addressing an application for adjournment, which is declined as the issue is already covered by a previous decision of the Tribunal. The applications for waiver of pre-deposit of duty, interest, and penalties are filed by applicants engaged in the manufacture of sugar and molasses.

2. All applications are considered together as they involve a common issue related to the demand for payment of exempted goods, specifically bagasse and press mud cleared without duty payment. The Revenue alleges that the applicants availed credit for common inputs used in manufacturing both excisable and exempted goods, making them liable to pay a percentage of the price of exempted goods under Rule 6 of the Cenvat Credit Rules, 2004.

3. The total demand in these applications amounts to Rs 36 lakhs, of which the applicants have already paid Rs 14.85 lakhs. The Tribunal refers to a previous case involving similar grounds, where the demand was set aside. Consequently, the Tribunal decides to waive the pre-deposit of the remaining dues and stays the recovery for the appeal hearing.

4. The judgment directs the Registry to list the appeals for hearing on a specific date, ensuring a timely resolution of the matter. Ultimately, the stay petitions are allowed, providing relief to the applicants pending the outcome of the appeal process.