2013 (11) TMI 1084 - AT - Central Excise

Captive Consumption Waiver of Pre-deposit Held that - The applicant took the definite stand that sugar syrup containing 37% is not marketable - it is a fit case for waiver of entire amount of duty, penalty and interest thus Pre-deposit of entire amount of duty along with interest and penalties waived till the disposal stay granted.

Summary

Issues involved: Stay applications for waiver of duty, penalty, and interest on the manufacture of sugar syrup used in captive consumption.

Analysis:

1. Manufacture of biscuits as job worker: The applicant is engaged in the manufacture of biscuits as a job worker for a principal manufacturer. During the manufacturing process, the applicant also manufactures sugar syrup for captive consumption.

2. Demand of duty: An impugned order demanded a total duty of Rs. 84,42,946/- along with interest and penalties for the period from 1.4.2007 to 11.9.2011.

3. Contentions of the appellant: The appellant contended that the sugar syrup produced is not marketable. Additionally, it was argued that the demand made through a show cause notice dated 1.5.12 is partly barred by limitation. The appellant cited a previous case where the Tribunal granted unconditional stay on a similar issue.

4. Revenue's arguments: The Revenue argued that the Commissioner rightly rejected the claim of non-marketability based on the judgment of the Honorable Supreme Court and a circular by the Board. They also relied on a previous decision of the Tribunal in a similar case.

5. Tribunal's finding: The Tribunal noted that the applicant took a clear stand that the sugar syrup with 37% content is not marketable. Considering the previous decision where unconditional stay was granted on the same issue, the Tribunal found it appropriate to waive the entire amount of duty, penalty, and interest. Consequently, the pre-deposit requirement was waived, and the recovery of the amount was stayed during the pendency of the appeals.

6. Decision: The Tribunal allowed the stay applications, concluding that the case warranted the waiver of the duty, penalty, and interest, and the recovery of the amount was stayed pending the appeals.

This detailed analysis of the judgment highlights the key issues, arguments presented by both sides, the Tribunal's findings, and the ultimate decision to grant the stay applications for waiver of duty, penalty, and interest in the case of manufacturing sugar syrup for captive consumption.