2014 (6) TMI 514 - AT - Central Excise

100% EOU - waiver of pre-deposit - paper waste aggregated in the factory premises - Held that - Appellant cannot clear the said paper to DTA due to the amendment to the policy. We find that the appellant s own case 2012 (10) TMI 499 - CESTAT, AHMEDABAD which is held that the appellant is a EOU and segregation of the scrap in his factory would be amounting to manufacture as per the provisions during the relevant period. If that be so, the clearance of paper waste in the DTA would be permissible under the Foreign Trade Policy during the relevant period. We are of the view that the appellant has made out a prima facie case for the waiver of the pre-deposit of the amounts involved. Accordingly, the application for waiver of pre-deposit of the amounts involved is allowed and recovery thereof stayed till the disposal of appeal - Stay granted.

Summary

The Appellate Tribunal CESTAT Ahmedabad allowed the waiver of pre-deposit for an amount of Rs. 4,34,593/-, interest, and penalty confirmed as customs duty on paper waste in a factory registered as an EOU. The Tribunal found that the appellant had a prima facie case for waiver as the clearance of paper waste to DTA was permissible under the Foreign Trade Policy during the relevant period. Recovery of the amounts involved was stayed until the appeal's disposal.