2015 (10) TMI 1944 - AT - Central Excise

Waiver of pre deposit - Held that - Appellant has made out a prima facie case for waiver of pre-deposit of the amounts involved on the ground that the appellant has been charged with payment of Central Excise duty on recovered Toluene. On perusal of the records, we find that the appellant has sent the waste that arises during the manufacturing of Ciprofloxacin HCL, wherein the Toluene is used as a solvent. The said waste solvent is sent for distillation and recovered Toluene is received back in the premises of the appellant or directly sent to the job worker for manufacturing of another product. In our view, the recovered Toluene which is being utilized for manufacture of Quinine Sulphate, prima facie, cannot be considered as liable for duty as the same is recovered. At this juncture, we find that the appellant has made out a prima facie case for waiver of the pre-deposit of the amounts involved. - Stay granted.

Summary

Issues: Stay petition for waiver of pre-deposit of Central Excise duty on recovered Toluene.

Analysis:
1. The Stay Petition was filed on 7-10-2013, and the matter has been pending for disposal since then. Despite multiple adjournments, the appellant's counsel failed to appear on various dates, leading to delays in the proceedings. The latest adjournment request citing the counsel's illness was rejected by the Bench.

2. Upon hearing the Departmental Representative and examining the records, it was noted that the appellant had a prima facie case for the waiver of pre-deposit of the amounts involved. The appellant was charged with Central Excise duty on recovered Toluene, a byproduct of the manufacturing process of Ciprofloxacin HCL. The recovered Toluene was utilized for manufacturing Quinine Sulphate, and it was argued that since the Toluene was recovered and reused, it should not be considered liable for duty. The Tribunal found merit in this argument and granted the application for waiver of pre-deposit, staying the recovery until the appeal's disposal.

3. The Tribunal's decision to allow the waiver of pre-deposit was based on the understanding that the recovered Toluene, being a byproduct of the manufacturing process and reused in a different product, should not attract Central Excise duty. The appellant successfully established a prima facie case for the waiver, leading to the stay of recovery until the appeal's final resolution.