2014 (1) TMI 1013 - AT - Central Excise

Maintainability of Common appeal - Whether one common appeal can be filed by the appellant and whether it is in consonance with the CESTAT Procedure Rules or not Held that - The adjudicating authority has disposed of two show cause notices of the same entity that is, United Phosphorus Limited having two units within his jurisdiction - one appeal will suffice as the provisions of Rule 6A permit for filing one appeal by the aggrieved person. Duty not discharged on goods cleared - Proper valuation of the final products not maintained - Waiver of Pre-deposit Held that - For demand of Rs. 6.12 Crores, the appellant has already deposited the entire amount along with interest and is contesting the issue on merits as well as on limitation the amount submitted is enough deposit to hear and dispose the appeal For the demand of Rs. 84.97 Lakhs, unconditional waiver allowed in the similar circumstances Thus, the appellant has made out a prima facie case for the waiver of pre-deposit of the amount Pre-deposits waived till the disposal Stay granted.

Summary

Issues involved:
1. Filing a common appeal by the appellant for two separate units.
2. Waiver of pre-deposit of duty amounting to Rs. 84.97 lakhs and Rs. 6.12 crores, interest, and penalty.

Analysis:

Issue 1: Filing a common appeal by the appellant for two separate units
The appellant filed a stay petition seeking the waiver of pre-deposit of duty for two units, Unit No. II and Unit No. III. The adjudicating authority confirmed duty liabilities for both units due to improper valuation of goods. The appellant argued that both units are part of the same entity, United Phosphorus Limited, and therefore, one common appeal suffices. The Tribunal agreed, citing Rule 6A of the CESTAT Procedure Rules, which allows one appeal when there is one impugned order, even if multiple units of the same entity are involved. The Tribunal held that United Phosphorus Limited is the aggrieved party, justifying the filing of a single appeal for both units.

Issue 2: Waiver of pre-deposit of duty
Regarding the duty liability of Rs. 6.12 crores, the appellant had already deposited the full amount along with interest and contested the issue on merits and limitation. The Tribunal considered this deposit sufficient to proceed with the appeal. For the demand of Rs. 84.97 lakhs, the appellant argued that a coordinate Bench had granted unconditional waiver in a similar case involving the same appellant. The Tribunal found this argument valid and granted a prima facie case for the waiver of the duty liability, interest, and penalty amount. Consequently, the Tribunal allowed the application for the waiver of the balance amounts and stayed the recovery until the appeal's disposal.

In conclusion, the Tribunal allowed the waiver of pre-deposit for the balance amounts involved and stayed the recovery until the appeal is finalized. The matter was scheduled for final disposal based on the substantial amount at stake, as requested by both parties.