2015 (12) TMI 1341 - AT - Customs

Waiver of pre deposit - Central Excise exemption based on the condition of non-availment of Cenvat credit on the input used in the goods is admissible for exemption of CVD on the imported goods - Held that - As regard the prayer of the appellant that they were granted conditional stay despite the reference made by Chennai Bench to the larger bench, we do not agree with applicant for the reason that this Tribunal has passed stay order after considering this very aspect, in para 5.7 of the stay order dated 23/01/2015, therefore order cannot be modified on that ground. However on perusal of Hon ble Supreme Court judgment in the case of SRF Ltd 2015 (4) TMI 561 - SUPREME COURT . we find that eligibility of concessional CVD under notification 12/2012-Cus dated 17/3/2012 has been decided in favour of the assessee. Therefore, we are of the Prima facie view that applicant is entitle for benefit of concessional rate of CVD. After considering the notification as per submission of the Ld. Counsel the total duty demand stand at ₹ 1.19 crore. We therefore direct the applicant to pre-deposit of ₹ 60 lakhs within a period of one week - stay granted partly.

Summary

Issues:
1. Modification of stay order requiring pre-deposit of Rs. 4.5 crore.
2. Eligibility for concessional rate of CVD under notification 12/2012-Cus.
3. Compliance with the modified stay order.

Analysis:
1. The appellant sought modification of the stay order mandating a pre-deposit of Rs. 4.5 crore. The appellant's counsel argued that in a similar case, the Chennai Bench of CESTAT referred the matter to a Larger Bench, and the Madras High Court upheld the Tribunal's decision to grant unconditional stay in such cases. Additionally, citing a Supreme Court judgment in the SRF Ltd. case, the appellant contended that they were entitled to a reduced demand of Rs. 1.19 crore instead of Rs. 14 crores due to the eligibility of a concessional rate of CVD. The appellant offered to deposit 50% of the reduced amount.

2. The Revenue's Special Counsel stated no objection to the modification if the appellant deposited 50% of Rs. 1.19 crore. Upon reviewing the submissions, the Tribunal acknowledged the Supreme Court's ruling in the SRF Ltd. case regarding the eligibility of concessional CVD under notification 12/2012-Cus. The Tribunal held that the appellant was entitled to the benefit of the concessional rate of CVD, reducing the total duty demand to Rs. 1.19 crore. Consequently, the Tribunal directed the appellant to pre-deposit Rs. 60 lakhs within a week and report compliance by a specified date. The stay order was modified accordingly, and the appeal was scheduled for regular hearing subject to the pre-deposit condition.

3. In conclusion, the Tribunal rejected the appellant's argument for unconditional stay based on the Larger Bench reference but acknowledged the appellant's entitlement to the concessional rate of CVD as per the Supreme Court judgment. The Tribunal ordered a reduced pre-deposit amount and set a compliance deadline, modifying the original stay order accordingly for further proceedings.