2014 (6) TMI 788 - AT - Central Excise

Waiver of pre-deposit of duty - manufacture - applicants are putting Motorcycles and scooters to electrolyte and charge the battery of the two-wheelers - Demand is confirmed on the ground that this activity amounts to manufacture - Held that - applicant being dealers only charging the battery by putting electrolyte. Prima facie this activity cannot be considered as manufacture of motorcycles. The pre-deposit of the remaining amount of dues are waived and recovery of the same is stayed during the pendency of the appeal - Stay granted.

Summary

The Appellate Tribunal CESTAT MUMBAI granted waiver of pre-deposit of duty, interest, and penalty to the appellant, a dealer of motorcycles and scooters. The demand was based on the activity of charging the battery with electrolyte, considered as manufacture. The Tribunal found this activity not amounting to manufacture of motorcycles, and waived the remaining amount of dues. Recovery of the same was stayed during the appeal process. The appeal was listed for regular hearing on 16-5-2013.