2005 (12) TMI 144 - AT - Central Excise

Summary

Issues involved: Stay petition dismissal for non-prosecution, clearance of inputs under CT-3 certificate without payment of duty, applicability of Notification No. 1/95-C.E., duty demand confirmation, penalty imposition.

Stay petition dismissal: The appellants' stay petition was dismissed for non-prosecution due to their absence on the hearing date. However, after explaining their absence, the Tribunal modified the stay order, waived the pre-deposit, and proceeded to hear the appeal on merit.

Clearance of inputs under CT-3 certificate: The appellants, having a unit in the Domestic Tariff Area and a nearby 100% EOU, cleared inputs under CT-3 certificate without duty payment from the DTA unit to the EOU. They argued that such clearance is covered by Notification No. 1/95-C.E. and cited relevant case laws to support their position.

Applicability of Notification and duty demand: Upon reviewing the case records and relevant laws, the Tribunal found that the clearance of inputs against the CT-3 certificate to another EOU without duty payment is permissible, provided the EOU accounts for and utilizes the inputs for export production. The Tribunal disagreed with the department's duty demand confirmation and penalty imposition, noting that denial of credit to the DTA unit was illogical when proper documentation was in place.

Decision: The Tribunal set aside the impugned order, granting consequential benefit to the appellants. The appeal was allowed, and miscellaneous applications were disposed of accordingly.