2014 (1) TMI 1056 - AT - Central Excise

Non-compliance of Conditions of Notification No.83/94 Declarations not filed - Waiver of Pre-deposit Held that - The applicant had cleared the goods without the undertaking of the raw material supplier and there is contravention of Notification No.83/94-CE - Assessee failed to show any evidence in this regard thus, the applicant failed to make out a prima facie case for waiver of pre-deposit of entire amount - the applicant is directed to deposit a sum of Rupees One lakh as pre-deposit upon such submission rest of the duty to be stayed till the disposal partial stay granted.

Summary

Issues:
1. Application for waiver of predeposit of duty
2. Allegation of non-fulfillment of conditions under Notification No.83/94-CE
3. Comparison with a previous Tribunal case
4. Reference to a Supreme Court decision on non-compliance of procedure under Central Excise Rules
5. Contravention of Notification No.83/94-CE and lack of evidence

Analysis:
The judgment by the Appellate Tribunal CESTAT CHENNAI dealt with an application for waiver of predeposit of duty amounting to Rs.4,93,445/- along with interest and penalty. The applicant, identified as a job worker, faced allegations of the principal manufacturer's failure to file the required declaration under Notification No.83/94-CE. The adjudicating authority upheld the demand citing non-fulfillment of conditions specified under the said notification.

During the proceedings, the applicant's advocate referenced a previous Tribunal case involving similar issues, Salem Weld Mesh Vs CCE Salem, where the appeal of the assessee was allowed. Additionally, the Authorized Representative for Revenue presented a decision from the Hon'ble Supreme Court in the case of CCE New Delhi Vs Hari Chand Shri Gopal, concerning non-compliance with the procedure under Chapter X of the erstwhile Central Excise Rules, 1944.

The Tribunal observed that the applicant had indeed cleared goods without the necessary undertaking from the raw material supplier, leading to a contravention of Notification No.83/94-CE. While the advocate cited a case where the manufacturing process was accepted, no evidence was presented in the current case to support this claim. Consequently, the Tribunal found that the applicant failed to establish a prima facie case for the waiver of the entire predeposit amount. As a result, the applicant was directed to deposit Rs.1,00,000/- within four weeks, with the remaining amount of tax, interest, and penalty waived upon compliance. The recovery of the balance amount was stayed pending the appeal process.