2014 (6) TMI 718 - AT - Central Excise

Waiver of pre-deposit - 100% EOU - inclusion of goods cleared under Notification No. 43/2001 under Rule 19 of Central Excise Rules, 2002 for the purpose of computation of DTA clearance - Held that - clearance made by the applicant following procedure are laid down under benefit of Notification No. 43/2001-C.E. (N.T.) to the manufacturer-exporter who has obtained the permission from the Jurisdictional Commissionerate to procure the goods from the applicants duty free. In these circumstances, the applicants have made out a prima facie case in their favour. Accordingly, we waive the requirement of pre-deposit of the entire amount of duty, interest and penalty and stay recovery thereof during the pendency of the appeal - Stay granted.

Summary

Issues involved:
Interpretation of benefit of Notification No. 43/2001 under Rule 19 of Central Excise Rules, 2002 for clearance of goods to manufacturer-exporter without payment of duty.

Analysis:
The case involves a dispute over the clearance of goods by the applicants to a manufacturer-exporter under the benefit of Notification No. 43/2001-C.E. (N.T.). The Revenue contends that the clearance made to the manufacturer-exporter should be included in DTA clearances, making the applicants liable to pay duty. The applicants, being exporters and 100% EOU, have followed the prescribed procedure and obtained permission from the Jurisdictional Commissionerate to clear goods duty-free to the manufacturer-exporter. The Tribunal, after hearing both sides, noted that the only dispute is regarding the clearance made by the applicant following the procedure laid down under the said notification. It was observed that the applicants have made out a prima facie case in their favor, leading to the waiver of the requirement of pre-deposit of the entire amount of duty, interest, and penalty. The recovery of the said amounts was stayed during the pendency of the appeal.

This judgment primarily revolves around the interpretation and application of the benefit provided under Notification No. 43/2001-C.E. (N.T.) in the context of clearance of goods to a manufacturer-exporter by the applicants. The Tribunal focused on whether the applicants complied with the prescribed procedure and obtained necessary permissions from the Jurisdictional Commissionerate to clear goods duty-free. The dispute centered on whether such clearances should be considered as part of DTA clearances, thereby imposing duty liability on the applicants. The Tribunal's decision to waive the pre-deposit requirement and stay the recovery of duty, interest, and penalty indicates a preliminary assessment in favor of the applicants, acknowledging the existence of a prima facie case supporting their position.

In conclusion, the judgment by the Appellate Tribunal CESTAT Mumbai delves into the intricacies of the benefit of Notification No. 43/2001-C.E. (N.T.) under Rule 19 of the Central Excise Rules, 2002 concerning the clearance of goods to a manufacturer-exporter without payment of duty. The Tribunal's analysis and decision to grant relief to the applicants during the appeal process signify a recognition of the prima facie case presented by the applicants regarding the procedural compliance and entitlement to the benefit under the said notification.