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TMI Blog2013 (5) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... in two appeals being Appeal Nos. 1106-1107/ATVAT/12-13 relating to the assessment period 2007-08. The appellant, before us, had filed those appeals before the Tribunal being aggrieved by the orders passed by the Special Commissioner-I (Appeals) whereby an additional demand of Rs. 7,21,35,255/- was raised and penalties totaling Rs. 9,26,86,645/- had been imposed. One appeal was in respect of the additional demand and the other appeal was in respect of the penalties. 2. By virtue of the impugned order passed under Section 76(4) of the said Act, the Tribunal has directed the appellant to deposit 20% of the disputed amount as a pre-condition for hearing the appeals. The learned counsel for the appellant pointed out that if 20% of the disputed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... products The Third Schedule (See Section 4) List of Goods Taxed at 4% Sl. No. COMMODITY 1 ... ... ... ... ... ... ... ... 120 Paraffix wax of all grades/standards other than food grade standards including standard wax and slack wax." 4. It is the contention of the appellant that Entry No. 120 of the Third Schedule was introduced with effect from 11.05.2005. Prior to that there was no specific Entry with regard to Paraffin wax. As such, prior to 11.05.2005, Paraffix wax was covered under the general Entry No. 1(ix) of the Fourth Schedule which dealt with wax in general. On and from 11.05.2005, since there was a specific Entry with regard to Paraffin wax, the rate of tax applicable was 4% and not 20%, which was the rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture of candles would fall within Entry No. 120 of the Third Schedule. Since the appellant was not able to demonstrate before the Tribunal that the Paraffin wax produced by it and sold by it was exclusively for the purpose of manufacture of candles, the appellant cannot take advantage of Entry No. 120 of the Third Schedule. It was, therefore, contended by the learned counsel for the respondent that the appellant's product Paraffix wax was clearly covered under Entry No. 1(ix) of the Fourth Schedule. Therefore, the revenue contended that rate of tax would be 20% and not 4%. 7. We also note from the impugned order that the Tribunal came to a prima-facie view against the appellant in the following manner:- "We have heard the Ld. Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is directed to deposit 20% of the amount in dispute in each of the appeals as condition precedent for hearing the appeals on merit. Appellant is directed accordingly. Appellant shall deposit the amount within a period of 30 days; and on showing proof of compliance thereof to the Registry, appeals shall be listed to be heard on merit on 28.03.2013." (underlining added) On going through the above extract, we are, prima-facie, of the view that the Tribunal has committed an error. This is so because the Tribunal took the prima-facie view that Entry No. 120 of the Third Schedule covers only 'certain grades / standards' of Paraffin wax, whereas, the Entry clearly refers to 'Paraffin wax of all grades / standards' except Food Grade Standard and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... doubt ought to have been given to the assessee. Thus taking a prima-facie view of the matter and giving the benefit of doubt to the assessee at this stage, we feel that the Tribunal ought not to have directed the appellant to deposit any amount out of the tax demanded as also the penalty levied as a condition for hearing the appeals. Consequently, we set aside the impugned order dated 18.02.2013. 10. Counsel on both sides have requested this court to issue a direction for expediting the appeals. Since the point in issue is short, we feel that the Tribunal may be in a position to expedite the hearing of the appeals. Consequently, we direct that the Tribunal should dispose of the appeals as expeditiously as possible and preferably within 6 w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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