2014 (1) TMI 105 - AT - Central Excise

Waiver of pre-deposit - Duty demand - Discharge of the Central Excise duty liability - Receipt of royalty from the company for the rightful use of the brand names - Held that - appellant has discharged the Central Excise duty based on the retail sale price minus 15% discount as provided under Notification No. 245/83. It is to be noted that the said notification talks about retail sale price which is MRP minus said duty and other taxes from the VAT. If that be so, prima facie, we find that the entire amount which has been received by the appellant for a particular business centre gets included in the cost of the product which they are selling - appellant has made out a prima facie case for pre-deposit of the amounts involved. Accordingly, the application for waiver of pre-deposit of balance amounts involved is allowed and recovery thereof stayed till the disposal of appeal - Stay granted.

Summary

The Appellate Tribunal CESTAT Ahmedabad allowed the Stay Petition for waiver of pre-deposit of Rs. 8,80,612/-, interest, and penalty of Rs. 2 lakhs. The appellant discharged Central Excise duty based on retail sale price minus 15% discount as per Notification No. 245/83. The Tribunal found a prima facie case for pre-deposit of the amounts involved and stayed recovery until appeal disposal.