2016 (2) TMI 209 - AT - Central Excise

Manufacture of Laminated Bagasse Board - Waiver of pre deposit of the duty demand along with interest and equivalent amount of penalty - Held that - We find that as per the notification no. 12/2012 dated 17.03.2012 (Sl. No. 330) the bagasse board is exempted from payment of duty. We also take a note of clarification issued by the CBEC dated 19.06.2007 wherein it has been clarified that pre laminated bagasse particle board are exempted from duty and entitled for exemption under notification no. 6/2006 (Sl. No. 82) of the said notification. The said notification was superseded by the notification no. 12/2012 dated 17.03.2012. We further note that the Hon ble High Court of Gujarat in the case of Dharshan Boardlam Ltd. (2013 (4) TMI 326 - GUJARAT HIGH COURT) also held that pre laminated bagasse board is entitled for exemption under notification no. 6/2006. In these circumstances, applicant has made out a case of complete waiver of pre deposit. Consequently, we waive the requirement of pre-deposit of entire amount of duty, interest and penalty and stay recovery thereof during the pendency of the appeal. The Ld. Counsel for the applicant also prayed that appeal be disposed of. As today only the stay application is listed before us, therefore, we are disposing of the same today. As it is the contention of the ld. Counsel for the applicant that issue is squarely covered by the decision of the Hon ble High Court of Gujarat in the case of Dharshan Boardlam Ltd. (2013 (4) TMI 326 - GUJARAT HIGH COURT ) and clarification issued by the CBEC and the periodical SCN are being issued, therefore, we direct the registry to list the appeal for final disposal on 30.09.2015.

Summary

Issues:
Waiver of pre-deposit of duty demand under notification no.12/2012-CE for manufacturing pre Laminated Bagasse Board.

Analysis:
The applicant sought waiver of pre-deposit of duty demand amounting to Rs. 71,73,188/- along with interest and penalty, claiming exemption under notification no.12/2012-CE for manufacturing pre Laminated Bagasse Board. The Revenue contended that the applicant was not entitled to the exemption and issued a show cause notice leading to the impugned demands. The applicant argued that prior to notification no. 12/2012-CE, another notification no. 6/2006-CE was in force exempting Bagasse board from duty payment. They referred to a Revenue clarification supporting their exemption claim and cited a High Court decision where a similar product was granted exemption under the earlier notification. The Revenue argued that the product in question was not Bagasse board but pre-laminated bagasse board, hence not eligible for the exemption.

The Tribunal noted that as per the relevant notifications and clarifications, the bagasse board was exempted from duty payment. Referring to the High Court decision and the clarification issued by CBEC, it was established that pre-laminated bagasse board was entitled to exemption under the earlier notification. The Tribunal observed that the applicant had made a case for complete waiver of pre-deposit. Consequently, the requirement of pre-deposit of the duty, interest, and penalty was waived, and recovery stayed during the appeal's pendency. The Tribunal also directed the registry to list the appeal for final disposal based on the contention that the issue was covered by the High Court decision and recurring show cause notices.

In conclusion, the Tribunal granted the waiver of pre-deposit based on the applicant's entitlement to exemption under the relevant notifications and previous judicial decisions. The Tribunal also acknowledged the recurring nature of the issue and directed the appeal to be listed for final disposal, considering the settled legal position.