2013 (12) TMI 685 - AT - Central Excise

Classification of the goods Waiver of Pre-deposit - The Revenue wants to classify under Heading 4820 of the Tariff, which covers registers, account books, notebooks, order books, receipt books, letter pads, manifold business forms etc. whereas the applicants want to classify the same as printed books, brochures, leaflets and similar printed matters - Held that - The products, prima facie cannot be treated as printed books, brochures or leaflets, therefore the applicants have not made out a case for total waiver of duty - the applicants are directed to deposit an amount equal to 50% of the duty as pre-deposit upon such submission rest of the duty to be waived till the disposal Partial stay granted.

Summary

Issues:
1. Application for waiver of pre-deposit of duty, interest, and penalty under Section 11AC of the Central Excise Act.
2. Classification of goods under Chapter Heading 4820 or Chapter 49 of the Tariff.

Analysis:
Issue 1: The applicant sought waiver of pre-deposit of duty amounting to Rs.28,96,923, along with interest and penalty imposed under Section 11AC of the Central Excise Act. The Commissioner (Appeals) had directed the applicant to deposit 50% of the duty for the appeal hearing, but the applicant failed to comply, leading to the dismissal of the appeal. The Tribunal considered the applicant's contention and directed them to deposit an amount equal to 50% of the confirmed duty within eight weeks. Upon compliance, the pre-deposit of the remaining dues was waived for the appeal hearing scheduled for a specific date.

Issue 2: The core issue revolved around the classification of the products in question. The Revenue argued that the goods, including LIC forms, bank statement forms, cheques, and stationery, fell under Chapter Heading 4820 of the Tariff, covering registers, account books, and business forms. On the other hand, the applicants claimed that the goods should be classified under Chapter 49 of the Tariff, which pertains to printed books, brochures, and leaflets. The Tribunal examined the nature of the products and concluded that they did not qualify as printed books, brochures, or leaflets. Therefore, the applicants were directed to deposit 50% of the confirmed duty amount, considering the earlier stay order and the classification dispute. The Tribunal emphasized that the applicants had not substantiated a case for a complete waiver of duty, leading to the specified directive for deposit and compliance within a stipulated timeframe.

This judgment highlights the significance of proper classification under the Tariff and the procedural requirements for seeking waiver of duty pre-deposit in excise matters. The Tribunal's decision underscores the need for a clear demonstration of classification principles and compliance with deposit conditions for the appeal process to proceed effectively.