2012 (1) TMI 115 - AT - Central Excise

Waiver of pre-deposit of duty - Excisability of press mud cenvat credit for exempted and non exempted products Held that - Following decision of CCE, Tirunelveli v. Dharani Sugars & Chemicals Ltd. reported in 2008 (8) TMI 618 - CESTAT, CHENNAI and in the case of CCE, Visakhapatnam v. Sri Sarvarya Sugars Ltd. reported in 2009 (7) TMI 670 - CESTAT, BANGALORE held that admixture of two waste materials is also a waste material. In view of the above decisions, we find that the applicant has a strong prima facie case in their favour, therefore the pre-deposit of duty and interest is waived and recovery of the same is stayed during the pendency of the appeal - Stay granted.

Summary

Issues:
Waiver of pre-deposit of duty and interest based on the contention of mixing waste materials to create organic manure without payment of duty.

Analysis:
The applicant, engaged in manufacturing sugar and distillery products, filed for waiver of pre-deposit of duty amounting to Rs. 30,14,852/- and interest. The applicant argued that the mixture of press mud and spent wash, treated with chemicals to create organic manure, was cleared without duty payment as it was considered waste of the industry. The Revenue contended that the applicant should pay 10% of the organic manure price due to availing credit for common inputs without maintaining separate records. The Tribunal referred to precedents in similar cases, such as CCE, Tirunelveli v. Dharani Sugars & Chemicals Ltd. and CCE, Visakhapatnam v. Sri Sarvarya Sugars Ltd., where the admixture of waste materials was considered waste. The Tribunal found a strong prima facie case in favor of the applicant, leading to the waiver of pre-deposit of duty and interest, with recovery stayed during the appeal's pendency. The stay petition was allowed, emphasizing the applicant's favorable position based on established legal precedents.

This judgment highlights the importance of legal precedents in determining cases involving the classification of materials as waste and the applicability of duty payments. It underscores the significance of maintaining clear records and following established legal principles to support claims for waiver of duty payments. The decision showcases the Tribunal's adherence to past rulings and the consideration of strong prima facie cases when granting relief in matters of duty pre-deposit and interest waiver. The case serves as a reminder of the role of legal precedents in shaping decisions and the need for consistency in applying legal principles to similar factual scenarios.