2014 (1) TMI 523 - AT - Central Excise

Clandestine Removal of Goods Clearance made by improperly declaring the retail sale price Undervaluation of Tiles - Waiver of Pre-deposit Held that - The Tribunal has been following judgment of Hon ble High Court of Gujarat that an assessee should deposit 8% of the amount of duty confirmed - The appellant has deposited an amount which is more than 8% of the duty liability - the amount already deposited is enough to hear and dispose the appeals Pre-deposits waived till the disposal Stay granted.

Summary

Issues: Stay petitions for waiver of pre-deposit of duty demand, penalty, and interest.

Analysis:
1. Duty Demand, Penalty, and Interest Confirmation: The stay petitions were filed seeking the waiver of pre-deposit for duty demand, penalty, and interest amounts. The adjudicating authority confirmed the amounts due to undervaluation of tiles by the appellant in retail sale price declaration.

2. Deposit and Submissions: The appellant had already deposited Rs.25 lakhs out of the Rs.78.32 lakhs demanded during the proceedings. The counsel argued that the deposited amount exceeded 8% of the duty confirmed, citing a similar practice followed by the Tribunal based on a High Court judgment.

3. Consideration and Decision: After reviewing submissions and records, the Tribunal acknowledged that the appellant's deposit surpassed the 8% threshold set by the High Court of Gujarat. Consequently, the Tribunal deemed the deposited amount sufficient for hearing and disposing of the appeal. Therefore, the applications for waiver of pre-deposit for the remaining amounts were granted, and recovery was stayed until the appeal's resolution.