2014 (1) TMI 1155 - AT - Central Excise

Clandestine removal of final product - Goods manufactured and cleared to own unit Waiver fo Pre-deposit Held that - Prima facie, the demand stands confirmed against the applicants - Once the Tribunal has held that there was no receipt of raw material by the Rania unit clandestinely manufactured and cleared their final product - the allegation cannot be sustained - Prima facie the assessee is able to establish a case in their favour pre-deposits waived till the disposal Stay granted.

Summary

Issues:
- Application to dispense with pre-deposit of duty and penalty
- Allegation of clandestine removal of final product
- Confirmation of demand against the appellants
- Previous Tribunal order setting aside demand against another unit
- Fresh show cause notice issued to present appellants
- Prima facie case in favor of the appellant

Analysis:
The judgment pertains to an application seeking dispensation of the pre-deposit condition of duty and penalty amounting to Rs.50,86,570/-, imposed due to the alleged clandestine removal of final products, specifically MS ingots and billets. The Central Excise officers visited a unit, Rania, and recovered incriminating documents, leading to allegations that unaccounted ingots and billets were received from the appellants, manufactured into final products, and cleared without duty payment. However, a previous Tribunal order had set aside the demand against the Rania unit. Subsequently, a fresh show cause notice was issued to the present appellants, confirming the demand related to the ingots and billets cleared clandestinely to the Rania unit. The Tribunal, in its analysis, noted that since the earlier Tribunal order had found no clandestine receipt of raw material by the Rania unit, the allegation against the present appellants could not be sustained based on the same set of facts. Consequently, the Tribunal found a prima facie case in favor of the appellant, warranting the allowance of the stay petition unconditionally.