2013 (11) TMI 1130 - AT - Central Excise

Benefit of Notification No.4/2006 available upto a limit Concessional rate of duty to be paid after the limit Waiver of Pre-deposit - Held that - Both the serial number provides different conditions - the exemption under Serial No. 90 of the Table appended to the Notification has not been granted absolutely - Prima facie, the findings of the Commissioner are not sustainable - the applicant has made out a prima facie case for waiver of the entire amount of duty, interest and penalty - Pre-deposit of the entire amount of duty, interest and penalty waived and recovery stayed till the disposal of the appeal stay granted.

Summary

Issues:
1. Interpretation of Notification No.4/2006-CE regarding concessional rate of duty for kraft paper manufacture.
2. Comparison of conditions under Sl. No. 90 and Sl. No. 91 of the Table appended to the notification.
3. Application of case law on absolute exemption and its relevance to the present case.
4. Prima facie consideration for waiver of duty, interest, and penalty.

Analysis:
1. The judgment revolves around the interpretation of Notification No.4/2006-CE concerning the concessional rate of duty for the manufacture of kraft paper. The Revenue contended that the applicants should avail the benefit under Sl. No. 90 instead of Sl. No. 91, leading to a demand for duty, interest, and penalty.

2. The Tribunal analyzed the conditions under both Sl. No. 90 and Sl. No. 91 of the notification. It was observed that there were different conditions for the first clearance of 3500 MTs of kraft paper under these serial numbers. The Board's Circular was also referenced to highlight the distinction between absolute exemption and the conditions provided in the notification.

3. The Tribunal considered the case law precedent on absolute exemption in the context of the present case. It was noted that the exemption under Sl. No. 90 of the notification was not granted absolutely, unlike the scenario in the case law referenced. Therefore, the Tribunal found that the findings of the Commissioner were not sustainable based on the conditions specified under the relevant serial numbers.

4. Based on the prima facie assessment, the Tribunal granted a waiver of pre-deposit of duty, interest, and penalty, staying the recovery during the pendency of the appeal. This decision aligned with a previous stay order issued in a similar case, providing relief to the applicants in the current matter. The Tribunal's decision was dictated and pronounced in open court, ensuring transparency in the proceedings.