2000 (11) TMI 420 - AT - Central Excise

Summary

Issues:
Five applications for waiver of pre-deposit of duty of excise confirmed and penalty imposed.

Analysis:
The case involved five applications seeking a waiver of pre-deposit of excise duty and penalties. The applicants were three different entities engaged in the manufacture of expeller machines and parts. The Adjudicating Authority had found that the applicants connived to avail an exemption under a specific notification. It was noted that the machinery required for manufacturing was primarily located in the premises of one of the applicants, leading to the conclusion that the manufacturing activities were jointly undertaken. The Commissioner had confirmed the Adjudication Order, which included confiscation of goods, redemption fine, and penalties.

The applicants argued that they were independent units with separate partners, premises, and manufacturing facilities, holding relevant certificates and registrations. They emphasized the absence of financial transactions among them, the separate clearance of goods to individual customers, and the availability of machinery supported by purchase invoices. They also contended that the officers' visit coincided with a maintenance period, justifying the lack of machinery visibility. The applicants had already made partial deposits as directed by the Commissioner (Appeals) and requested no further deposits.

After considering the arguments, the Tribunal acknowledged the contentious issue of whether the clearances by the applicants should be clubbed for exemption eligibility. However, since the applicants had made the required pre-deposits as per the Commissioner's orders, the Tribunal decided no further pre-deposits were necessary. Consequently, the Tribunal waived the remaining pre-deposit amounts of duty and penalty and stayed the recovery during the appeal process, scheduling the final hearing for December 27, 2000.