2014 (1) TMI 1057 - AT - Central Excise

Entitlement for benefit of Notification No. 89/95 Fatty acids emerges during the refining of vegetable oil Waiver of Pre-deposit Held that - Relying upon ADINATH DYEING AND FINISHING MILLS Versus COMMR. OF C. EX., LUDHIANA 2005 (7) TMI 114 - HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH and the Board s circular - The Board has issued a circular dated 30.03.2012 floating the survey for issuance of notification in terms of Section 11C - the appellant has been able to make out a prima-facie case for waiver of condition of pre-deposit pre-deposits waived till the disposal Stay granted.

Summary

Issues:
- Entitlement to benefit of Notification No. 89/95-CE dated 15.05.1995 for fatty acids emerging during vegetable oil refining.

Analysis:
The judgment revolves around the issue of whether fatty acids produced during the refining of vegetable oil are eligible for the benefits under Notification No. 89/95-CE dated 15.05.1995. The appellant's advocate acknowledged the existence of conflicting decisions both favoring and opposing the appellant, with approval from the Hon'ble Supreme Court. The appellant's association requested the issuance of an 11-C notification based on these conflicting decisions, leading to the Board's circular dated 30.03.2012 initiating a survey for the notification. The advocate argued for dispensing with the pre-deposit and staying the recovery, citing a previous stay order No. 1937/2012-Ex(BR) dated 26.11.2012 to support this request.

The Tribunal, after considering the arguments and records, referenced the Board's circular of 30.03.2012 and 26.12.2002, along with relevant judgments, including one from the Punjab & Haryana High Court. The Tribunal concluded that the appellant had established a prima facie case for the waiver of the pre-deposit condition. Consequently, the stay application was granted, and the requirement for pre-deposit of duty, interest, and penalty was waived. Following this precedent, the Tribunal allowed the stay petition in both applications, providing relief to the appellant in the matter. The judgment highlights the importance of legal precedents, circulars, and relevant case laws in determining the entitlement to benefits under specific notifications in the context of taxation laws.