2014 (1) TMI 626 - AT - Central Excise

Scrutiny of rival claims - Correctness of inclusion and/or exclusion of clearance documents/invoices in the recapitulation statement and consequent discharge of duty Waiver of Pre-deposit Held that - It is a pure question of appreciation of facts and evidences, which could be possible only at the time of hearing of the appeal the assessee made an offer to deposit Rupees Six Crores as pre-deposits which is accepted upon such submission rest of the duty to be stayed till the disposal Partial stay granted.

Summary

Issues:
Waiver of pre-deposit of duty and penalty for the Appellant and other Applicants.

Analysis:
The Appellant, a steel manufacturing company, sought waiver of duty and penalty totaling Rs.34.62 crores and Rs.33.10 crores, respectively, due to discrepancies in payment of excise duty. The Appellant utilized a consolidated debit facility for duty payments based on a daily Recapitulation Statement listing invoices. An audit revealed non-payment on 30 invoices, leading to a demand of Rs.45,91,24,705.76. The Appellant admitted a shortfall of Rs.4.82 crores but claimed an excess payment of Rs.4.76 crores. The dispute centered on the correct inclusion/exclusion of invoices in the statement and subsequent duty discharge. The Adjudicating Authority reduced the liability to Rs.34,62,23,989.89 but failed to fully consider the Appellant's detailed statement, prompting the appeal for waiver.

The Appellant's argument emphasized the misinterpretation of their reconciliation statement by the Adjudicating Authority, leading to the unilateral conclusion of a duty shortfall. The issue revolved around the proper scrutiny of invoice inclusion/exclusion in the Recapitulation Statement and subsequent duty discharge during the relevant period. The Appellant's contention of unappreciated reconciliation statements highlighted a lack of opportunity for clarification during adjudication. The Tribunal accepted the Appellant's offer to deposit Rs.6.00 crores, directing compliance within four weeks to stay recovery of the remaining dues during the appeal. Failure to deposit would result in the dismissal of all appeals without further notice, emphasizing the criticality of the deposit for maintaining the appeal's validity.

This judgment underscores the importance of meticulous documentation and scrutiny in excise duty payments, showcasing the need for thorough assessment and fair opportunities for explanation during adjudication. The Tribunal's decision to accept the partial deposit offer while highlighting the pending scrutiny of facts and evidences signifies a balanced approach to resolving the dispute and ensuring due process in the legal proceedings.