2015 (9) TMI 1364 - AT - Customs

Waiver of pre-deposit - 100% EOU - Additional Duty of Customs (SAD) on the goods cleared on stock transfer to their own unit - Notification No.23/2003-CE, dated 31.03.2003 - Held that - In view of the Tribunal s decision 2014 (11) TMI 154 - CESTAT MUMBAI , the appellant has a prima facie case for waiver of pre-deposit. We, therefore, waive the pre-deposit of adjudged dues and stay recovery thereof till disposal of the appeal. - Stay granted.

Summary

Issues:
Waiver of pre-deposit against duty demand of Additional Duty of Customs (SAD) on stock transfer to own unit, applicability of VAT on goods cleared to sister unit, limitation on the issue.

Analysis:
The appellant, an EOU, sought waiver of pre-deposit against a duty demand of &8377;1,52,47,716/- for Additional Duty of Customs (SAD) on goods transferred to their own unit. The dispute arose as the Adjudicating authority imposed SAD, contending that goods stock transferred did not attract VAT. The appellant argued that the transfer was to their sister unit and the issue was time-barred. The appellant cited relevant case laws to support their position.

The Adjudicating authority, supported by the Authorized Representative, relied on a Board circular stating that stock transfer within the same company by an EOU unit is considered a DTA sale, hence exempt from VAT. They upheld the Additional Duty of Customs. However, the appellant referenced a Tribunal decision granting them the benefit of Notification No. 23/2003 for stock transfers to their sister unit, establishing a prima facie case for waiver of pre-deposit.

Considering the Tribunal's decision in favor of the appellant, allowing the benefit of the notification for stock transfers to their sister unit, the pre-deposit of adjudged dues was waived, and recovery stayed pending appeal disposal. This decision was based on the interpretation of relevant laws and precedents, ensuring fair treatment and adherence to legal provisions.