2004 (11) TMI 255 - AT - Central Excise

Summary

Issues: Application for waiver of pre-deposit of Central Excise duty and penalty.

Analysis:
The judgment pertains to an Application by M/s. Caterpillar India Pvt. Ltd. for the waiver of pre-deposit of Central Excise duty amounting to Rs. 89,74,400/- and a penalty of Rs. 25 lakhs. The Applicant argued that they supplied excisable goods to subcontractors involved in the Golden Quadrilateral Project, financed by the Asian Development Bank, and provided necessary certificates as per Notification No. 108/95-C.E. The goods were used in the project's manufacture. The Applicant contended that no pre-deposit should be required. On the contrary, the Revenue argued that goods should have been supplied directly to the Project authority, not subcontractors, and that the benefit of the Notification would not apply due to the circuitous route of supply.

Upon considering the submissions, the Tribunal noted certificates issued by the National Highway Authority of India in favor of subcontractors responsible for constructing roads under the project financed by the Asian Development Bank. It was acknowledged that subcontractors were executing the awarded contracts. The Tribunal found that the Applicants had established a strong prima facie case. Consequently, the recovery of the entire duty and penalty amount was stayed during the appeal's pendency, scheduled for a hearing on 17th March 2005. The judgment was dictated and pronounced in the Open Court.