2014 (4) TMI 838 - AT - Central Excise

Waiver of pre-deposit - Demand of differential duty - MRP Valuation under Section 4A of the Central Excise Act, 1944 - Insulated Wares - Held that - there is no dispute that the items which are cleared and sold by the appellant are without affixation of MRP by them. It is also admitted that the said items are being distributed free by the purchasers. In such circumstances, when there is no requirement of affixation of MRP on the said final products, the clarification by the CBEC in the Central Excise manual prima facie would cover the issue. In our view, the appellant has made out a strong prima facie case for the waiver of pre-deposit of amounts involved. Accordingly, the applications for waiver of pre-deposit of amounts involved are allowed and recovery thereof stayed till the disposal of appeals - Stay granted.

Summary

Issues:
Waiver of pre-deposit of duty liability on Insulated Ware under Section 4A of the Central Excise Act, 1944.

Analysis:
The judgment by the Appellate Tribunal CESTAT Ahmedabad pertains to two stay petitions concerning the waiver of pre-deposit of duty liability on Insulated Ware under Section 4A of the Central Excise Act, 1944. The issue at hand was whether the appellants, who were selling Insulated Wares, were discharging duty liability correctly under Section 4 of the Act, or if it should have been under Section 4A. The Revenue contended that the duty liability should have been discharged under Section 4A. The appellants argued that they were distributing the insulated ware as complimentary gifts without affixing MRP, citing a clarification in the Central Excise Manual by CBEC.

The Tribunal observed that the items sold by the appellant were indeed distributed without affixing MRP and were given as complimentary gifts. Considering the absence of MRP affixation and the nature of distribution, the Tribunal found that the CBEC clarification in the Central Excise Manual likely covered the issue. It was noted that the appellant had a strong prima facie case for the waiver of pre-deposit of the amounts involved. Consequently, the Tribunal allowed the applications for the waiver of pre-deposit and stayed the recovery of the amounts until the appeals were disposed of.

In conclusion, the Tribunal's decision in these stay petitions favored the appellants, recognizing the circumstances of distribution of Insulated Wares without MRP affixation and the applicability of the CBEC clarification. The waiver of pre-deposit was granted, and recovery of the amounts was stayed pending the appeal's resolution.