2014 (12) TMI 453 - AT - Central Excise

Waiver of pre deposit - Benefit of exemption Notification No. 06/2006-CE - Discharge of duty on imported inputs - DTA clearances - Held that - There are conflicting decisions of the Court in M/s. Synergies-Doorway Automative Limited & Ors reported at 2008 (2) TMI 117 - CESTAT, BANGALORE and Indira Printers 2010 (4) TMI 954 - CESTAT NEW DELHI - on the very same issue - Therefore the matter is referred to Hon ble President as to whether the issue needs to be resolved by a Larger Bench. However, we grant waiver of the amounts involved in these cases. Applications for the waiver of pre-deposit of the amounts involved are allowed and recovery thereof stayed till the disposal of the appeals - Stay granted.

Summary

Issues involved:
Demand of duty on goods cleared by an Export Oriented Unit to DTA without payment of duty.

Analysis:
The judgment by the Appellate Tribunal CESTAT Ahmedabad pertains to the issue of demand of duty on goods cleared by an Export Oriented Unit (EOU) to Domestic Tariff Area (DTA) without payment of duty. The appellant, an EOU, had imported and procured inputs for manufacturing goods for export under specific notifications requiring duty to be discharged if goods are cleared in DTA without payment of duty. The appellant had availed the benefit of exemption Notification No. 06/2006-CE. The Tribunal noted conflicting interpretations in previous cases: one holding that no duty can be demanded on imported inputs for DTA clearance claiming exemption, while another taking an opposite view. Given the contradictory views, the Tribunal decided to refer the matter to the Hon'ble President to consider constituting a Larger Bench to resolve the issue.

The Tribunal acknowledged the differing opinions within its own benches on the issue at hand, leading to the decision to seek guidance from the Hon'ble President on the necessity of a Larger Bench. Consequently, the Tribunal granted a waiver of the amounts involved in the cases under consideration and stayed the recovery of said amounts until the appeals are disposed of. This decision was made to ensure that the issue is thoroughly examined and resolved appropriately. The Registry was directed to forward a copy of the order along with relevant case laws to the Hon'ble President for careful consideration, emphasizing the significance of the matter and the need for a comprehensive resolution.

In conclusion, the judgment highlights the complexity surrounding the demand of duty on goods cleared by an EOU to DTA without payment of duty, showcasing the need for a definitive resolution due to conflicting interpretations within the Tribunal. The decision to refer the issue to the Hon'ble President for potential constitution of a Larger Bench underscores the importance of clarity and consistency in addressing such matters to avoid ambiguity and ensure fair treatment in similar cases.