2013 (7) TMI 50 - AT - Central Excise

Pre-Deposit SSI Exemption - power driven pump - certification from Bureau of Indian Standards. Held that - Held that - appellant is unable to justify why he has bought BIS certification for two of their products while the other products he has got for which there is a claim for benefit of SSI exemption. - prima facie case is against the assessee - stay granted partly.

Issues:
1. Waiver of pre-deposit of duty demand, penalty, and interest.
2. Applicability of Notification No.8/2003 for Small Scale Exemption.
3. Certification requirements under Bureau of Indian Standards (BIS).
4. Justification for BIS certification for certain products.
5. Compliance with deposit requirements during the pendency of the issue.

Issue 1: Waiver of Pre-deposit
The appellant filed a stay petition seeking the waiver of pre-deposit of confirmed amounts including duty demand, penalty, and interest. The Tribunal noted that the appellant improperly availed the benefit of Notification No.8/2003 without BIS certification for certain products. The appellant had already deposited a partial amount, and the Tribunal directed the appellant to deposit an additional sum within a specified period. Upon compliance, the application for waiver of pre-deposit of the remaining balance was allowed, and recovery stayed until the appeal's disposal.

Issue 2: Applicability of Notification No.8/2003
The Tribunal examined the conditions of Notification No.8/2003 for claiming the Small Scale Exemption benefit, specifically related to goods falling under Chapter 84. It was observed that the appellant failed to produce certifications for various products, leading to the denial of the exemption by Revenue Authorities. The appellant claimed certification for some products, but detailed scrutiny was deemed necessary considering the legal provisions and factual aspects. The Tribunal emphasized the need to understand the notification's provisions and factual issues before final disposal of the appeal.

Issue 3: Certification Requirements under BIS
The Tribunal highlighted the importance of BIS certification for products to qualify for the benefits under Notification No.8/2003. The appellant's inability to provide certifications for all manufactured products raised concerns regarding compliance with BIS standards. The Tribunal acknowledged the appellant's claim of certification for some products but stressed the necessity of a thorough examination during the appeal's final disposal.

Issue 4: Justification for BIS Certification
The Tribunal questioned the appellant's selective approach towards obtaining BIS certification for only two products while seeking SSI exemption for others. This inconsistency raised doubts about the appellant's compliance with BIS standards for all manufactured goods. The Tribunal emphasized the need for detailed scrutiny to determine the justification behind the varying certification approach adopted by the appellant.

Issue 5: Compliance with Deposit Requirements
During the pendency of the issue, the appellant had already deposited a partial amount as evidence of compliance. The Tribunal directed the appellant to deposit an additional sum within a specified timeframe and report compliance. Once the compliance was confirmed, the Tribunal allowed the waiver of pre-deposit for the remaining balance and stayed the recovery until the appeal's final disposal.

This detailed analysis of the judgment addresses the issues related to the waiver of pre-deposit, the applicability of Notification No.8/2003, certification requirements under BIS, justification for selective certification, and compliance with deposit requirements, providing a comprehensive understanding of the Tribunal's decision.

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