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2013 (11) TMI 1163 - AT - Central ExciseDeclaration to be made under Notification No. 214/84 - Job work - Manufacture activity under Chapter 72 of the Schedule to the Central Excise Tariff Act, 1985 Waiver of Pre-deposit - Held that - The raw material supplier of the applicant filed declaration as required under Notification No.214/86 belatedly - condition of Notification appeared to be satisfied Thus, Pre-deposit of duty, along with interest and penalty waived till the disposal Stay granted.
Issues: Application for waiver of pre-deposit of tax, duty demand on raw materials declaration, job work for Larsen & Toubro Ltd., satisfaction of Notification No.214/86 conditions.
In this judgment by the Appellate Tribunal CESTAT CHENNAI, the applicant sought waiver of pre-deposit of tax amounting to Rs.58,01,903/- along with interest and penalty of Rs.1 lakh. The applicant, engaged in manufacturing MS ingots, angles, channels, and flats falling under Chapter 72 of the Central Excise Tariff Act, was involved in job work for Larsen & Toubro Ltd. The duty was demanded due to the raw material supplier's failure to provide the required declaration under Notification No.214/86 dated 25.3.86. The applicant's advocate argued that Larsen & Toubro (L&T) had submitted a declaration to the jurisdictional Asst. Commissioner of Central Excise on 29.5.09, requesting condonation of delay in filing the declaration. Subsequently, a show cause notice was issued on 1.9.09. It was contended that L&T informed the applicant on 29.9.09 that they had paid the duty on the job work material. During the hearing, the Ld. AR requested time to verify whether the raw material supplier had discharged the duty on the job work material. Upon verification, the Ld. AR confirmed that the job work material was used in the manufacture of transmission towers by L&T, which were cleared on payment of duty. The Tribunal found that the raw material supplier had belatedly filed the required declaration under Notification No.214/86, and the conditions of the Notification seemed to be satisfied. Consequently, the pre-deposit of duty, interest, and penalty was waived, and the recovery was stayed during the pendency of the appeal. The stay application was allowed, and the decision was dictated and pronounced in open court.
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