2014 (8) TMI 130 - AT - Central Excise

Waiver of pre-deposit of duty - manufacture of Plaster of Paris Moulds for captive consumption and claimed exemption under Notification No.67/95-CE, dated 16.03.1995 - these goods were repeatedly used and then it was cleared as waste and scrap of POP moulds - Held that - applicant used duty paid input, input and credit etc., in the manufacture of POP moulds, which was captively used in the manufacture of final product. It appears that POP moulds cannot be treated as duty paid capital goods and prima facie, Rule 3(5A) of Cenvat Credit Rules, 2004 would not apply - Following decision of applicant s own case 2014 (1) TMI 1419 - CESTAT NEW DELHI - Stay granted.

Summary

Issues:
Application for waiver of pre-deposit of duty of Rs. 3,66,284/- along with interest and penalty for the period Jun. '06 to Nov. '10.

Analysis:
The applicant, engaged in the manufacture of sanitary wares, filed an application for waiver of pre-deposit of duty amounting to Rs. 3,66,284/- along with interest and penalty for the specified period. The Tribunal considered the case and noted that on an identical issue, the Tribunal had previously granted unconditional stay in the applicant's own case for an earlier period. The Tribunal referred to specific orders and decisions in support of the applicant's claim, highlighting the use of duty paid inputs in the manufacture of POP moulds, which were captively used in the final product. The Tribunal observed that POP moulds could not be treated as duty paid capital goods, indicating that Rule 3(5A) of Cenvat Credit Rules, 2004 would not apply in this scenario. Therefore, the Tribunal decided to waive the pre-deposit of the entire amount of duty, interest, and penalty, staying the recovery until the appeal's disposal.

The Revenue's Authorized Representative attempted to distinguish the earlier decision by referring to other cases, but the Tribunal found these distinctions to be inapplicable to the present case. The Tribunal emphasized the consistent grant of stay on similar issues by referring to past decisions. Consequently, the Tribunal decided to waive the pre-deposit of duty, interest, and penalty until the appeal's final disposal, instructing the Registry to link the current appeal with a specific previous appeal. The Tribunal allowed the stay application in favor of the applicant, ensuring that the recovery of the amount in question would remain stayed until the appeal's resolution.