2012 (1) TMI 347 - AT - Central Excise

Summary

Issues involved: Application for waiver of pre-deposit of duty, interest, and penalty under the Hot Air Independent Textile Processors Annual Capacity Determination Rules, 1998.

Summary:
The Appellate Tribunal CESTAT MUMBAI heard an application for waiver of pre-deposit of duty amounting to &8377; 28,58,839/-, interest, and penalty under the Hot Air Independent Textile Processors Annual Capacity Determination Rules, 1998. The demand was for the period from 16.12.98 to 28.2.99 and March 99 to February 2000. The Tribunal noted that the Hon'ble Madras High Court in the case of Beauty Dyers vs Union of India held Rule 3 of the said Rules to be ultra vires Section 3A of the Central Excise Act, rendering the demand unsustainable. The Revenue contended that the assessees are liable to pay duty of excise under Section 3 of the Act or any other relevant provisions. In light of the Madras High Court's decision, the impugned order was set aside, the pre-deposit condition was waived, and the matter was remanded for fresh adjudication, with the appellant being granted a personal hearing opportunity. The appeal was allowed by way of remand.