2014 (4) TMI 717 - AT - Central Excise

Waiver of pre deposit - Demand of differential duty - Discharge of 10% of the value of the finished goods cleared from the factory premises of the appellant who is functioning as a job worker - Held that - issue is an arguable one and needs to be gone into detail which can be done only at the final disposal of the appeal. In our considered view, the issue is not free from doubt, as to the aggregate value to be adopted for discharge of 10% of the value of the goods should include the value of the inputs which were supplied by the principle manufacturer. Accordingly, we are of the view that the appellant needs to be put to some conditions for hearing and disposing the appeal - Conditional stay granted.

Summary

Issues:
- Stay petition for waiver of pre-deposit of confirmed differential amount, interest, and penalty.
- Discharge of 10% of the value of finished goods by a job worker.

Analysis:
The judgment by the Appellate Tribunal CESTAT AHMEDABAD, delivered by Mr. M.V. Ravindran, addressed a stay petition seeking the waiver of pre-deposit of a confirmed amount along with interest and penalty. The issue at hand pertained to the discharge of 10% of the value of finished goods by a job worker. The tribunal, after hearing both sides and examining the records, noted the contention of the appellant regarding the discharge of 10% based on actual consumption of materials and job charges agreed upon with the principal manufacturer.

Upon thorough consideration, the tribunal found the issue to be arguable and requiring detailed examination during the final disposal of the appeal. The key point of contention was whether the aggregate value for discharging 10% of the goods should include the value of inputs supplied by the principal manufacturer. Consequently, the tribunal directed the appellant to deposit a specific amount within a stipulated period and report compliance. Upon compliance, the application for waiver of pre-deposit of the remaining amounts was allowed, and recovery stayed until the appeal's final disposal.

In conclusion, the judgment highlighted the need for detailed scrutiny of the issue concerning the discharge of 10% of the goods' value by a job worker, emphasizing the requirement for the appellant to meet specific conditions for the appeal's hearing and disposal.