2014 (1) TMI 631 - AT - Central Excise

Revenue s Interest to be taken care of - Classification of goods - Classification of CTPD under 27060090 attracting nil rate of duty OR under 27081010 alleging that the product is not CTPD but PCM - Waiver of Pre-deposit Held that - The appellants themselves have accepted that their product now mentioned as CTPD, was previously known as PCM - In disposal of the application seeking waiver of predeposit under Section 35F of the Central Excise Act, 1944, besides, prima-facie case, the interest of revenue is also need to be kept in mind Following COMMR. OF C. EX., GUNTUR Versus SRI CHAITANYA EDUCATIONAL COMMITTEE 2011 (1) TMI 356 - HIGH COURT ANDHRA PRADESH to meet the ends of justice and keeping in view the interest of Revenue and also the fact that the applicant being a Public Sector Undertaking - the applicants directed to deposit Rupees five crores as pre-deposit Upon such submission rest of the amount to be stayed till the disposal Partial stay granted.

Summary

Issues:
Waiver of pre-deposit of duty and penalty for the applicant.

Analysis:
The appellant sought waiver of pre-deposit of duty amounting to Rs.27.04 crores and an equal penalty. The appellant, a Public Sector Undertaking, argued for waiver based on a previous order by the Tribunal for a similar issue in an earlier period. The Department, represented by the Special Counsel, acknowledged the common issue of classification of CTPD in all connected appeals. The Department contended that despite the appellant's claim that CTPD and PCM are different products, their own reply indicated otherwise. The Department emphasized the need to safeguard the interest of revenue even in the presence of a strong prima facie case. The appellant's counsel countered by stating that facilities for PCM production had been dismantled, and previous replies had addressed the issue effectively. The Tribunal noted the pending appeals on the same issue from 1998 to 2011 and the previous waiver of pre-deposit due to the long-pending nature of the classification dispute. The Tribunal considered the appellant's admission in a reply that PCM and CTPD were the same product, leading to the decision to direct a deposit of Rs.5.00 crores within eight weeks to balance the interest of revenue and the appellant being a Public Sector Undertaking.

This detailed analysis of the judgment highlights the arguments presented by both parties, the Tribunal's considerations, and the final decision regarding the waiver of pre-deposit of duty and penalty for the appellant.