1995 (1) TMI 237 - AT - Central Excise

Summary

Issues:
1. Amendment of amount in dispute for appeal pre-deposit.
2. Whether subsequent demands can be considered in the appeal.
3. Grant of waiver of pre-deposit for Modvat credit on materials.

Issue 1: Amendment of amount in dispute for appeal pre-deposit
The appellants sought to amend the amount in dispute for their appeal pre-deposit through a Misc. application, increasing it from Rs. 14,35,578/- to Rs. 29,99,830/- to account for subsequent demands raised by the Assistant Collector. The Tribunal, after hearing both parties, denied the amendment as the original order specified only the initial amount. The subsequent demands were related to independent proceedings and were dismissed, directing the appeal to proceed based on the original amount specified.

Issue 2: Consideration of subsequent demands in the appeal
The subsequent demands raised by the Assistant Collector were deemed to be related to other independent proceedings and not directly connected to the appeal in question. The Tribunal dismissed the Misc. application to revise the amount in dispute, emphasizing that the appeal was against the order-in-appeal specifying the original amount, and not the subsequent demands.

Issue 3: Grant of waiver of pre-deposit for Modvat credit on materials
The appellants sought a waiver of pre-deposit for Modvat credit on materials used in their manufacturing process. They argued that the materials were essential for the manufacturing process and should not be excluded under Rule 57A. The Departmental Representative opposed the waiver, stating that the materials did not qualify as inputs for Modvat credit. After considering the arguments, the Tribunal directed the appellants to deposit 50% of the duty amount and keep the remaining 50% unutilized in their account during the appeal's pendency. The pre-deposit was to be made within three months, with compliance due by a specified date.

This judgment addresses the issues of amending the amount in dispute for appeal pre-deposit, the consideration of subsequent demands in the appeal, and the grant of waiver of pre-deposit for Modvat credit on essential materials. The Tribunal emphasized the importance of adhering to the original amount specified in the order-in-appeal, dismissed the Misc. application for amendment, and directed the appellants to make a partial pre-deposit while keeping the remaining amount unutilized during the appeal process.