2013 (11) TMI 1184 - AT - Central Excise

Classification of Goods - Waiver of Pre-deposit of Interest and Penalty Held that - The items in question i.e., register, daily work sheet, pay sheets, increment certificates, various kinds for various departments, record books, muster etc is printed by the applicants are used for their in-house - The items in question are printed with the name of Brihn Mumbai Mahanagar Palika Mudranalay - Prima facie the applicant has made out a strong case in their favour - the amount already deposited is sufficient for hearing of the appeal - Pre-deposit of the remaining dues waived till the disposal Stay granted.

Summary

Issues:
1. Waiver of pre-deposit of interest and penalty on demand for manufacturing goods under Chapter heading 4820.10 of the Central Excise Tariff Act, 1944.
2. Contention regarding the marketability of printed items for in-house use.
3. Comparison with a previous Tribunal decision for waiver of dues.
4. Revenue's argument on marketability and partial deposit made by the applicant.

Analysis:

1. The applicant sought waiver of pre-deposit of Rs. 65,96,938/- interest and penalty on the confirmed demand for manufacturing goods under Chapter heading 4820.10 of the Central Excise Tariff Act, 1944. The contention was that the goods printed, such as register forms, stationery, etc., were not marketable as they were used internally by the applicant. The applicant had already paid a significant amount, and the Tribunal found a strong case in their favor, leading to the waiver of the remaining dues and a stay on recovery during the appeal process.

2. The core issue revolved around the marketability of the printed items by the applicant for their in-house use. The Tribunal examined the nature of the items, including register, daily work sheet, pay sheets, etc., which were specifically printed for internal use. Notably, these items bore the name of the Brihn Mumbai Mahanagar Palika Mudranalay, indicating their non-commercial nature. This assessment played a crucial role in determining the waiver of pre-deposit and the stay on recovery, as the Tribunal found the applicant's argument regarding the non-marketability of the items persuasive.

3. The applicant referenced a previous Tribunal decision involving the Deputy Chief Manager of Central Railway Printing Press, where a stay order was granted for dues related to stationery printed by the railways. This reference was instrumental in supporting the applicant's case for the waiver of pre-deposit, as it showcased a similar scenario where pre-deposit was waived for printed items used internally.

4. On the other hand, the Revenue contended that the account registers and other printed items were marketable, thereby asserting the liability of the applicant to pay duty. The Revenue highlighted a previous instance where the applicant had made a partial deposit against the demand, suggesting that a total waiver was not warranted. However, the Tribunal's analysis focused on the specific nature of the items printed by the applicant for internal use, leading to the decision to waive the remaining dues and stay the recovery process.

In conclusion, the judgment by the Appellate Tribunal CESTAT MUMBAI involved a detailed examination of the marketability of printed items for internal use, referencing past decisions, and balancing the arguments presented by the applicant and the Revenue to arrive at a decision favoring the waiver of pre-deposit and a stay on recovery during the appeal proceedings.