2013 (10) TMI 564 - AT - Central Excise

Payment of Education Cess and SHEC - Waiver of Pre-deposit - The issue involved is debiting Central Excise duty for payment of Education Cess and Senior and Higher Education Cess from RG-23 account maintained by the appellant Held that - The order that Ahmedabad Bench in the case of Indian Steel Corporation Limited vs. CCE, Rajkot 2008 (8) TMI 630 - CESTAT, AHMEDABAD on the same issue, has granted waiver of confirmed dues - Since a view has already been taken by this very Bench, there was no reason to take a different view there shall be stay on recoveries of confirmed dues and penalty till the disposal of appeal Stay granted.

Summary

Issues involved: Stay petition against Order-in-Appeal debiting Central Excise duty for payment of Education Cess and Senior and Higher Education Cess from RG-23 account.

Analysis:
1. Stay Petition against Order-in-Appeal: The stay petition was filed against Order-in-Appeal No. 184/2013(Raj)CE/AK/Commr(A)/Ahd dated 25.04.2012. The primary issue revolved around debiting Central Excise duty for the payment of Education Cess and Senior and Higher Education Cess from the RG-23 account maintained by the appellant.

2. Arguments by Appellant: Shri Dhaval Shah, the advocate representing the appellant, relied on various case laws to support the plea for granting a stay in the case. The appellant cited judgments such as the Hon'ble Gujarat High Court judgment in the case of CCE & S.T., Vapi vs. Madras Industries Textiles, a decision by CESTAT Ahmedabad Bench in the case of Aaren Syntex Pvt. Limited vs. CCE Vapi, and other relevant cases to bolster the argument for the stay.

3. Arguments by Revenue: Dr. J. Nagori, representing the Revenue, contended that the judgments cited by the appellant had been appropriately distinguished by the Commissioner (Appeals) and were not directly applicable to the specific facts and circumstances of the case.

4. Decision and Rationale: After hearing both sides, Mr. H.K. Thakur observed that the Ahmedabad Bench had previously granted a waiver of confirmed dues in a similar case involving Indian Steel Corporation Limited vs. CCE, Rajkot. Given this precedent, Mr. H.K. Thakur decided to grant a stay on the recoveries of confirmed dues and penalties until the appeal was disposed of. This decision was based on the consistency of views within the Bench and the relevance of the previous case in determining the outcome of the current petition.

This comprehensive analysis outlines the key issues, arguments presented by both parties, and the rationale behind the decision taken by Mr. H.K. Thakur regarding the stay petition against the Order-in-Appeal related to the debiting of Central Excise duty for Education Cess and Senior and Higher Education Cess.