2013 (12) TMI 1088 - AT - Central Excise

Valuation of Goods under Section 4A OR Section 4 of Central Excise Act, 1944 - Waiver of Pre-deposit Penalty under Rule 25 of Central Excise Rules, 2002 Held that - Appellant directed to deposit 10% of the duty liability as pre-deposit upon such submission rest of the duty to be stayed till the disposal Partial stay granted.

Summary

Issues:
- Stay petitions for waiver of pre-deposit of duty, interest, and penalty under Rule 25 of Central Excise Rules, 2002.
- Interpretation of duty liability under Section 4A and Section 4 of Central Excise Act, 1944.

Analysis:
The Appellate Tribunal CESTAT Ahmedabad heard the stay petitions filed by M/s Galpha Laboratories seeking waiver of pre-deposit of duty, interest, and penalty amounting to Rs.1,63,030 imposed under Rule 25 of Central Excise Rules, 2002. The lower authorities confirmed these amounts due to the appellant's alleged incorrect discharge of Central Excise duty on P&P medicaments supplied to hospitals. The crux of the issue revolved around the conflicting interpretations of duty liability under Section 4A of the Central Excise Act, 1944, as asserted by the Revenue, and Section 4 of the same Act, as claimed by the assessee.

Upon reviewing the records and considering the identical issue in a previous case involving M/s Alkem Laboratories Ltd., the Tribunal directed the main appellant, M/s Alkem Laboratories Ltd., to deposit 10% of the duty liability within four weeks and report compliance by a specified date. This decision was based on the Tribunal's earlier ruling in the case of M/s Alkem Laboratories Ltd. The Tribunal found no reason to deviate from its previous stance and allowed the applications for waiver of pre-deposit of the remaining balance amounts, staying the recovery until the disposal of appeals. The compliance reporting deadline and subsequent order date were set to ensure procedural adherence and timely resolution of the matter.

In conclusion, the Tribunal's judgment upheld the requirement for the main appellant to make a partial deposit of the duty liability while granting a waiver for the remaining balance subject to compliance reporting. The decision provided a structured approach to address the conflicting interpretations of duty liability under different sections of the Central Excise Act, emphasizing procedural compliance and fair resolution of the appeals.