1996 (12) TMI 173 - AT - Central Excise

Summary

Issues:
Stay application regarding Order-in-Appeal classification and exemption limit computation.

Analysis:
The appellant, a small scale unit manufacturing Non Refractory Preparations, claimed benefit under Notification No. 1/93. They contended errors in computing the exemption limit by the Department, leading to a reclassification under Tariff Item 32.14. The appellant provided technical opinions and literature to support their claim, highlighting discrepancies in the Department's actions. The Collector (Appeals) failed to address these contentions, leading to a lack of findings on crucial submissions.

The appellant argued that they had been paying duty on machinery items exempted under Notification No. 111/88 due to a legal mistake. They emphasized the exclusion of exported goods and machinery value for exemption limit calculation. The appellant's submission regarding discriminatory classification of similar products by other parties was also raised, along with the absence of clandestine removal or duty evasion, justifying no penalty imposition.

In response, the Department cited the Consultant's report, classification list, and appellant's descriptions for their decision. The technical differences between Tariff entries 32.09 and 32.14 were considered arguable, with the Collector (Appeals) examining the technical opinions provided. The Department's chemical examiner classified the product as distemper, contrary to the appellant's claims, further complicating the classification issue.

The Tribunal acknowledged the arguable nature of the classification and the necessity to consider all raised pleas. The discrepancy between the retired Chemical Examiner's report consulted by the appellant and the Departmental Chemical Examiner's report was noted. Considering the facts and circumstances, the Tribunal granted a waiver of pre-deposit and stayed recovery pending appeal, subject to a deposit of Rs. 75,000 within eight weeks, excluding the pre-deposit of penalty.

The case was scheduled for compliance reporting on 20th February 1997, ensuring further actions based on the Tribunal's decision.