2005 (1) TMI 205 - AT - Central Excise

Summary

Issues:
1. Application for retention of file in the Bench
2. Waiver of pre-deposit and penalty
3. Classification of goods under Central Excise
4. Prima facie unsustainable order under Chapter 30.03
5. Excisability of semi-finished product
6. Grounds for grant of waiver
7. Stay application and recovery of amounts

Analysis:
1. The appellants filed a misc. application seeking permission to retain the file in the Bench due to the location of their factory and Principal Office. The Bench allowed the application based on a Public Notice.

2. The appellants sought waiver of pre-deposit of a significant amount and a personal penalty. The issue involved the clearance of excisable goods without Central Excise Registration, with the appellants arguing that the cleared goods were semi-finished and not marketable. They provided evidence to support their claim and had already pre-deposited a substantial sum. The Bench considered various grounds for seeking waiver.

3. The Department initiated proceedings to classify the goods under Chapter 13, but the Commissioner confirmed the order under Chapter 30.03. Citing a Supreme Court judgment, the order was deemed prima facie unsustainable. The excisability of the semi-finished product, banned by the Drugs Department from marketing, was a key consideration for granting waiver.

4. The Bench found that the appellants' case prima facie favored granting a waiver due to the nature of the product and the pre-deposited amount. The stay application was allowed, providing full waiver of pre-deposit and staying recovery. The appeals were scheduled for an expedited hearing, with a requirement for a report from the Commissioner.

5. The Bench emphasized that there should be no recovery until the appeal's disposal, considering the significant amounts involved. The decision was based on the prima facie nature of the case in favor of the appellants, highlighting the grounds for granting the waiver and the stay application.