2014 (1) TMI 1011 - AT - Central Excise

Waiver of Pre-deposit Held that - The payment of Rs. 11,10,984/- made by the assessee and appropriated by the adjudicating authority has been found to be in discharge of admitted liability and therefore the appellant has got to pre-deposit interest thereon - the outstanding amount payable towards duty and interest is Rs. 8,07,173/-, which is offered as pre-deposit and accepted upon such submission rest of the duty to be stayed till the disposal Partial stay granted.

Summary

Issues involved:
Waiver and stay of duty and penalty amounting to Rs. 52,47,256/-, payment of duty for the period from 2005-06 to August 2009, claim of SSI benefit, payment of duty under proper invoices, pre-deposit of interest on admitted liability, documentary evidence of payment of duty, outstanding amount payable towards duty and interest.

Analysis:

1. The appellant filed an application seeking waiver and stay in relation to a duty amount of Rs. 52,47,256/- and an equal penalty. The demand of duty pertained to the period from 2005-06 to August 2009. It was noted that the appellant had paid Rs. 11,10,984/- towards duty during investigations, which was appropriated by the adjudicating authority. The appellant initially claimed SSI benefit for the first two financial years of the dispute period but continued to clear excisable products without paying duty after crossing the exemption limit. However, for the later period of dispute (from 2007-08 onwards), the appellant contended that they paid the correct duty subsequently under proper invoices, supported by sample delivery challans and invoices. The Superintendent (AR) suggested a strict scrutiny of the payment claims, which was acknowledged by the Tribunal. The pre-deposit interest on the admitted liability of Rs. 11,10,984/- was required from the appellant.

2. The appellant's counsel presented documentary evidence of an additional payment of Rs. 5 lakhs towards duty dated 10.01.2013. The interest on the total duty paid by the appellant was calculated at Rs. 10,16,914/-, of which Rs. 4,15,480/- had been paid. The remaining unpaid duty for the period 2005-06 and 2006-07 was Rs. 2,07,341/- with an interest of Rs. 1,86,434/-. The total outstanding amount towards duty and interest was computed at Rs. 8,07,173/-, which the appellant offered as a pre-deposit. The Superintendent (AR) did not contest this calculation at the current stage.

3. Consequently, the Tribunal directed the appellant to pre-deposit the sum of Rs. 8,07,173/- within six weeks and report compliance by a specified date. Upon verification of compliance by the Deputy Registrar, there would be a waiver and stay in relation to the remaining dues adjudged against the appellant. The decision was pronounced and dictated in open court.

This detailed analysis of the judgment highlights the issues involved, the arguments presented by both parties, and the Tribunal's decision regarding the pre-deposit amount and subsequent waiver and stay of the outstanding dues.