2014 (1) TMI 579 - AT - Central Excise

Eligibility for availment of benefit of Notification No. 30/2004 - Waiver of pre-deposit Personal Penalty Held that - The appellant, after opting for the benefit of Notification No. 30/2004, has not availed any cenvat credit on the inputs which are utilised for such products which are cleared by them under exemption Notification No. 30/2004-CE - If that be so, the entire show cause notice which seeks to demand of duty for non-compliance of the conditions, seems to be misconstrued as there is no condition which has not been complied with by the assessee The appellants have made out a strong prima facie case in their favour pre-deposits waived till the disposal Stay granted.

Summary

Issues:
Waiver of duty amount, interest, and penalties under Notification No. 30/2004-CE.

Analysis:
The judgment pertains to stay petitions filed for the waiver of duty amount, interest, and penalties totaling Rs. 7,06,337/- under Notification No. 30/2004-CE. The amounts were confirmed as differential duty liability, interest, and penalties on the main assessee and individuals for allegedly incorrectly availing the said notification's benefit. The appellant, a manufacturer of textile and textile articles, had availed the benefit of Notification No. 30/2004-CE from August 2005. The first appellate authority noted that the appellant did not utilize any cenvat credit on inputs for products cleared under the exemption notification. The Tribunal observed that the show cause notice demanding duty appeared misconstrued as the appellant had complied with all conditions of the notification.

In a previous decision involving Polycot Knitters & Others, the Tribunal expressed a similar view, indicating consistency in its interpretation of such cases. Based on a prima facie assessment, the Tribunal found that the appellants had presented a strong case for the waiver of pre-deposit of the amounts involved. The Tribunal deemed the views expressed in the Polycot Knitters case applicable to the present matter. Consequently, the Tribunal allowed the applications for the waiver of pre-deposit of amounts and stayed the recovery until the appeals' final disposal. The judgment was dictated and pronounced in court by Mr. M.V. Ravindran.