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2014 (6) TMI 648 - AT - Central ExciseWaiver of pre deposit - CENVAT Credit - Credit on stapler pins - appellant after availing credit of duty paid on the stapler pins cleared the carton pack on an MRP which is inclusive of the cost of the stapler pins. - Held that - prima facie appellant is not undertaking any further activity on stapler pins procured by them from the other manufacturer. The same simply accompany the staplers manufactured by them on which duty has already been paid. The stapler pins are also duty paid. As such, we at this stage, find no justifiable reasons to direct the applicant to pay the duty for the second time in respect of the same stapler pins on which no activity is done by them - Stay granted.
Issues: Duty liability on stapler pins supplied free of cost as part of a promotional scheme.
In this judgment by the Appellate Tribunal CESTAT NEW DELHI, the issue revolved around the duty liability on stapler pins supplied free of cost by the appellant as part of a promotional scheme. The appellant, engaged in the manufacture of staplers, procured stapler pins from other manufacturers, which were cleared on payment of duty. These stapler pins were sometimes included in combi-packs of staplers and stapler pins. The appellant availed credit for duty paid on the stapler pins and cleared the carton packs at an MRP inclusive of the cost of the stapler pins. The Revenue contended that the cost of the stapler pins supplied free of cost to distributors should be added to the MRP of the staplers cleared on payment of duty, as per Section 4A of the Central Excise Act. However, the Tribunal found that the appellant did not undertake any further activity on the stapler pins procured from other manufacturers. The stapler pins simply accompanied the staplers manufactured by the appellant, on which duty had already been paid. The Tribunal concluded that there were no justifiable reasons to direct the appellant to pay duty for the second time on the same stapler pins, as no additional activity was performed on them by the appellant. Consequently, the Tribunal dispensed with the condition of pre-deposit of duty and penalty, allowing the stay petition unconditionally.
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