2013 (2) TMI 310 - AT - Central Excise

Waiver of pre-deposit - Stay petition - Rule 4 of the CENVAT Credit Rules, 2004 - Job work - Returned the final product without payment of duty - Benefit of Notification No.214/86-CE dated 25.03.1986 - Held that - We do not find any commission/omission attributable to the assessee which made them ineligible for the benefit of Notification No.214/86-CE. If there is any failure, it is at the end of the supplier and it is not known how the supplier having no factory of his own has been allowed to register as a manufacturer under Central Excise Law. Prima facie, the action taken against the assessee may not be justified. Waive of pre-deposit of dues and Stay granted

Summary

The Appellate Tribunal CESTAT Bangalore ruled in favor of the appellant, stating that they were eligible for the benefit of Notification No.214/86-CE despite the supplier's lack of a manufacturing factory. The demand for duty payment was deemed unjustified. The tribunal waived the predeposit of dues and stayed the recovery pending appeal disposal.