2014 (1) TMI 329 - AT - Central Excise

PSC sleepers supplied at rate lower than the approved rate - Waiver of Pre-deposit Held that - The approval of price list has been dispensed with w.e.f.1.4.94 and the clearance documents like, invoices/gate passes were accepted on the basis for determination of assessable value - the price at which the goods were sold after 1994, would be relevant for determination of the assessable value under Section 4 of the Act in view of the amendment to Rule 173C of erstwhile Central Excise Rules, 1944 - the applicants are able to make a prima-facie case in their favour Pre-deposits waived till the disposal Stay granted.

Summary

Issues:
Application for waiver of pre-deposit of duty and penalty under Section 11AC of the Central Excise Act, 1944.

Analysis:
The appellant applied for the waiver of pre-deposit of duty amounting to Rs.80,592 and an equal penalty imposed under Section 11AC of the Central Excise Act, 1944. The appellant contended that they supplied 1,54,659 PSC sleepers falling under Chapter Heading 6807.90 of CETA, 1985. They claimed that a revision of rates in 2001-2002 led to the payment of a differential duty of Rs.4,03,304 for the total supply of sleepers. The confusion arose regarding the clearance of 34,500 PSC sleepers without discharging duty on the revised prices. The Department's representative acknowledged that the appellant had paid the said differential duty based on the statements and challans provided. After hearing both parties and examining the records, the Tribunal found that the duty demanded for 34,500 sleepers was already included in the total supply of 1,54,659 sleepers to the Railways. Consequently, the Tribunal granted a total waiver of duty and penalty, allowing the stay of recovery during the appeal's pendency.

This judgment primarily dealt with the issue of waiver of pre-deposit of duty and penalty under Section 11AC of the Central Excise Act, 1944. The appellant successfully demonstrated that the duty demanded for 34,500 PSC sleepers was already covered in the total supply of 1,54,659 sleepers to the Railways. The Tribunal, after reviewing the statements and submissions, concluded that the appellant had made a prima facie case for the total waiver of duty and penalty. As a result, the Tribunal granted the waiver and stayed the recovery of all dues during the appeal process. The decision was based on the evidence presented and the acknowledgment by the Department's representative regarding the payment of the claimed duty amount.

In conclusion, the Tribunal's judgment in this case was in favor of the appellant, granting a total waiver of duty and penalty under Section 11AC of the Central Excise Act, 1944. The Tribunal found that the duty demanded for a specific quantity of PSC sleepers was already accounted for in the total supply made by the appellant to the Railways. This decision was supported by the evidence provided by both parties and the acknowledgment by the Department's representative regarding the payment of the claimed duty amount. The waiver was allowed, and the recovery of dues was stayed during the pendency of the appeal, ensuring fairness and justice in the adjudication process.