1998 (6) TMI 150 - AT - Central Excise

Summary

Issues:
1. Stay of operation of the impugned order enhancing prices of calcined alumina.
2. Exclusion of the cost of gunny bags in which calcined alumina is sold.
3. Modvat credit of duty paid by the applicants.
4. Application to the High Powered Committee for obtaining clearances.
5. Approval of price lists and its impact on revenue.

Analysis:

1. The appellant sought a stay on the order enhancing prices of calcined alumina, arguing that prices should be aligned with sales to a public sector unit. The Revenue contended that all buyers, including industrial consumers, are of the same class. The Tribunal rejected the stay, noting that the burden of enhanced value did not affect the applicants as they received Modvat credit for higher duty paid, causing no revenue loss over the years.

2. The appellant raised concerns about the exclusion of gunny bags' cost in the sale of calcined alumina. The Tribunal directed the Revenue to confirm if the matter was presented to the High Powered Committee for clearances, indicating a need for further information before proceeding.

3. The appellant highlighted the Modvat credit of duty paid at a higher value in Damanjodi, benefiting them when using calcined alumina in Angul. This practice, without revenue loss, influenced the Tribunal's decision to deny the stay, emphasizing the absence of adverse effects on the applicants.

4. Questions arose regarding the Revenue's application to the High Powered Committee for clearances related to the impugned order. The Tribunal instructed the Revenue to provide details on the status of the application, indicating the significance of obtaining necessary approvals for the ongoing proceedings.

5. Despite the pending clearance certificate from the High Powered Committee, the Tribunal decided to proceed with the hearing on the approval of price lists due to its impact on revenue. This decision underscored the importance of addressing the issue regardless of the certificate's availability, emphasizing the revenue implications of the matter at hand.