2013 (11) TMI 1102 - AT - Central Excise

Classification of water cooled cables - Waiver of pre-deposit of duty - Penalty under erstwhile Rule 173Q of Central Excise Rules, 1944 r.w Section 11AC of Central Excise Act, 1944 Held that - Following Pillar Induction (India) P. Ltd. vs. CCE, Chennai 1999 (1) TMI 158 - CEGAT, NEW DELHI - The applicant are engaged in the manufacture of water cooled cables which are primarily used as claimed by them with electric induction furnaces - Water cooled cables are classifiable under Chapter sub-heading 8544.00 of CETA, 1985 - the applicant could not able to make a prima facie case for total waiver of dues - the applicant directed to deposit 25% of the duty as pre-deposit upon such submission rest of the duty to be waived till the disposal Partial stay granted.

Summary

Issues: Application for waiver of pre-deposit of duty and penalty under Central Excise Rules.

Analysis:
1. The judgment deals with an application seeking waiver of pre-deposit of duty and penalty imposed under erstwhile Rule 173Q of Central Excise Rules, 1944 read with Section 11AC of Central Excise Act, 1944.

2. The advocate for the applicant argued that they are engaged in the manufacture of water cooled cables exclusively used with electric Arc furnaces, emphasizing that these cables cannot be used elsewhere.

3. The Revenue representative cited precedents where similar issues had been decided by the Tribunal, indicating that the matter had already been addressed in previous cases.

4. The advocate for the applicant contested that the previous judgments were not applicable to the current case, suggesting a distinction in the facts.

5. After hearing both sides and examining the records, the Tribunal found that the applicant manufactures water cooled cables primarily used with electric induction furnaces. Referring to a previous case, the Tribunal held that such cables are classifiable under Chapter sub-heading 8544.00 of CETA, 1985. Consequently, the Tribunal directed the applicant to deposit 25% of the duty within twelve weeks, with the balance dues waived upon compliance. Failure to deposit would lead to the dismissal of the Appeal without further notice, with a compliance report due on a specified date.