1994 (7) TMI 169 - AT - Central Excise

Summary

Issues:
Prayer for dispensing with pre-deposit of duty amounts in cases of two metal industries. Benefit of exemption notification under Notification No. 178/88-C.E. claimed. Applicability of earlier Tribunal decisions. Undue hardship if duty amounts deposited.

Analysis:
The appellants sought dispensation of pre-deposit of duty amounts in the cases of M/s. Sarawgi Metal Industries and M/s. Siotia Metal Industries, citing similarity in the issue. The duty amounts were specified as Rs. 1,18,979.45 and Rs. 1,32,776.61 respectively, with no penalty involved. The main contention was regarding the benefit of exemption notification under Notification No. 178/88-C.E., dated 13-5-1988, concerning the use of zinc as an input alongside copper. The appellants relied on Tribunal decisions in similar cases to support their argument, emphasizing para No. 6 of a specific judgment. The respondent acknowledged the issue's coverage in later Tribunal decisions but left the decision to the Bench's discretion.

Upon hearing both sides and examining the facts and relevant judgments, the Tribunal found no reason to deny the appellants the benefit of the precedent set by earlier Tribunal decisions. Referring to para No. 6 of a specific judgment, the Tribunal reproduced the relevant portion of the exemption notification, highlighting the conditions for availing the exemption. Considering the circumstances and the judgment of the Hon'ble Delhi High Court in a related case, the Tribunal concluded that requiring the appellants to deposit the duty amounts would result in undue hardship. Consequently, the Tribunal dispensed with the pre-deposit requirement and directed the revenue authorities not to pursue recovery proceedings, thereby allowing the Stay applications filed by the appellants.