2000 (11) TMI 432 - AT - Central Excise

Summary

Issues:
1. Waiver of pre-deposit of Modvat credit disallowed and penalty imposed.

Analysis:
The appellant sought waiver of pre-deposit of Modvat credit disallowed and penalty imposed. The Advocate argued that the demand in respect of the Proximitor and Cage Assembly was unsustainable and wrongly categorized, emphasizing that both items qualified as capital goods. The Proximitor was deemed integral to the Caliper Sensor, while the Cage Assembly was considered a component of the Boiler. The Advocate contended that the exclusion of heading 84.74 from the list of capital goods was rectified by a clarificatory amendment. Additionally, it was asserted that no penalty was justified as the appellant acted bona fide. The Revenue opposed the stay petition, reiterating the reasoning in the impugned order.

Upon review, the Judge found the amendment clarificatory and viewed the Proximitor as capital goods due to its essential role in the Caliper Sensor. However, detailed examination of relevant literature was deemed necessary during the main appeal. The Judge acknowledged the Advocate's strong case for granting the stay and waiving the pre-deposit condition. Consequently, the Judge dispensed with the requirement of pre-deposit for the entire duty and penalty, ensuring non-recovery during the appeal's pendency. Ultimately, the stay petition was unconditionally allowed.