2013 (10) TMI 232 - AT - Central Excise

Classification of Goods - Waiver of Pre-deposit - The applicant is engaged in the manufacture of bio-fertilizer and classified under Chapter 31 of CETA, 1985 and cleared at NIL rate of duty abatement of 33% under Notification No. 49/2008 - Held that - Sl. No. 45 of the Table appended to Notification No. 49/2008 provides abatement of 33% in respect of insecticides classified under sub-heading 3808 - Prima facie, after considering the submissions of both sides and the financial hardship of the applicant, we find that the deposit already made by the applicant would be sufficient for waiver of predeposit of balance amount of duty along with interest and penalty - Stay granted.

Summary

Issues: Classification of goods under different chapters, abatement under Notification No. 49/2008, determination of demand under Section 4A vs. Section 4 of the Central Excise Act, financial hardship of the applicant, waiver of predeposit of balance amount of duty, penalty, and interest.

The judgment by Appellate Tribunal CESTAT Chennai, delivered by Shri P.K. Das, addressed two appeals with a common issue regarding the classification of goods and demand of duty. The first appeal involved a duty demand of Rs.1,63,92,339 for the period October 2008 to March 2009, while the second appeal had a demand of Rs.2,37,65,131 for the period October 2009 to July 2010, with penalties and interest imposed. The applicant, engaged in bio-fertilizer manufacturing, challenged the classification of goods under Chapter 38 and Chapter 34, contending that the demand calculation did not consider the abatement of 33% under Notification No. 49/2008. The applicant argued for the demand to be determined under Section 4 of the Central Excise Act instead of Section 4A. Financial hardship was pleaded, supported by the submission of financial documents. The Tribunal noted the abatement provision under Notification No. 49/2008 for insecticides and considered the applicant's financial situation. After reviewing submissions and financial evidence, the Tribunal found the applicant's deposits sufficient to waive the predeposit of the balance duty amount, interest, and penalty until the appeals' disposal. The Tribunal granted stay applications and allowed the waiver, subject to verification of the deposits made by the applicant. The judgment aimed to address the issues of classification, abatement, demand determination, financial hardship, and the waiver of predeposit comprehensively.