2014 (1) TMI 373 - AT - Central Excise

Eligibility for Notification No.5/2006 Semi finished silver cleared - Waiver of Pre-deposit Held that - The appellant s claim under Sr.No.25 of the Notification No.4/2006 on such silver bars, cannot be denied for simple reason that any exemption which is beneficial to the assessee, has to be extended to them Following SHARE MEDICAL CARE Versus UNION OF INDIA 2007 (2) TMI 2 - SUPREME COURT OF INDIA and MANGALAM ALLOYS LTD. Versus COMMISSIONER OF CUS., AHMEDABAD 2010 (4) TMI 493 - CESTAT, AHMEDABAD - the appellant has made out a strong prima facie case for waiver of pre-deposit of the amounts Pre-deposits waived till the disposal Stay granted.

Summary

Issues:
Stay petition for waiver of pre-deposit of duty, interest, and penalty under Notification No.5/2006-CE.

Analysis:
The appellant filed a Stay Petition seeking waiver of pre-deposit of duty amounting to Rs.8,46,07,608, interest, and penalty of Rs.50 lakhs imposed by the adjudicating authority. The authority confirmed these amounts as duty liability, interest, and penalties due to the appellant availing ineligible benefits under Notification No.5/2006-CE. The appellant argued that they are entitled to exemption under Sr.No.25 of the notification for clearing Silver bars arising during the manufacturing of copper cathodes. The adjudicating authority did not consider the submissions properly, leading to the appeal before the Tribunal.

The appellant contended that they are clearing Silver bars, which are exempted under Sr.No.25 of Notification No.5/2006-CE, while duty arises on Silver in any form under Sr.No.21(C) of the same notification. The Tribunal observed that any beneficial exemption must be extended to the assessee, citing precedents from the Hon'ble Supreme Court and Tribunal judgments. Referring to judgments in Share Medical Care and Mangalam Alloys Ltd cases, the Tribunal found in favor of the appellant, stating that they have a strong prima facie case for waiver of pre-deposit due to the beneficial exemption under Sr.No.25.

The Tribunal, after careful consideration of submissions and records, allowed the application for waiver of pre-deposit of the amounts involved, staying the recovery until the appeal's disposal. The decision was based on the appellant's entitlement to exemption under Sr.No.25 of Notification No.5/2006-CE for clearing Silver bars arising during the manufacturing process, despite duty liability on Silver in any form under Sr.No.21(C) of the same notification. The Tribunal's decision was influenced by the settled law that beneficial exemptions should be extended to the assessee, as established by judicial precedents.