2013 (11) TMI 1346 - AT - Central Excise

Clearance of the goods for home consumption Scope of Notification No.29/2002 - Waiver of Pre-deposit of duty and penalty u/s 11AC of Central excise act,1944 Held that - The benefit of the said Notification is applicable to clearances from the places laid down - Prima facie, there was no substance in the reasoning of the Commissioner that clearance would not include clearance of goods for home-consumption Prima facie, the Notification is made applicable to clearances from places notified - It has not been specified clearance for home-consumption - Prima facie, the clearance for captive consumption also would come within the scope of the Notification - the Applicant could able to make out a prima facie case for total waiver of the pre-deposit of all dues Pre-deposit of all dues waived and its recovery stayed till the disposal Stay granted.

Summary

Issues:
- Application seeking waiver of predeposit of duty and penalty under Section 11AC of the Central Excise Act, 1944 based on Notification No.29/2002-CE dated 13.05.2002 for goods cleared for captive consumption.

Analysis:
The case involves an Application for waiver of predeposit of duty and penalty amounting to Rs.81.92 lakh under Section 11AC of the Central Excise Act, 1944. The Applicant, engaged in manufacturing excisable goods, cleared goods for captive consumption from April 2005 to January 2006, availing the benefit of Notification No.29/2002-CE dated 13.05.2002. The Revenue issued a demand notice alleging that the clearances were not covered under the said Notification. The crux of the dispute lies in the interpretation of the Notification, which provides for concessional duty rates for goods cleared from specific locations mentioned in the Notification. The Applicant argued that the Notification does not explicitly exclude clearances for captive consumption and inserting such exclusion would go against legal principles.

Upon considering the arguments, the Tribunal analyzed the wording of the Notification, which exempts goods cleared from specific locations listed in the Notification from the Central Excise Tariff Act. The Tribunal noted that the Notification does not mention 'clearance for home-consumption' explicitly, but rather focuses on clearances from the specified places. The Tribunal found merit in the Applicant's argument that excluding clearances for captive consumption would require inserting words not present in the Notification, contrary to legal principles. Therefore, the Tribunal held that prima facie, the clearance for captive consumption also falls within the scope of the Notification. Consequently, the Tribunal granted a total waiver of the predeposit of all dues adjudged and stayed the recovery during the pendency of the Appeal.

In conclusion, the Tribunal's decision centered on the interpretation of the Notification and the scope of clearances eligible for concessional duty rates. By emphasizing the wording of the Notification and the absence of explicit exclusion for captive consumption clearances, the Tribunal granted the Applicant's request for waiver, highlighting the importance of adhering to legal principles in statutory interpretations.