2002 (3) TMI 632 - AT - Central Excise

Tribunal waives pre-deposit for appeal on duty assessment. Deposit, Bank Guarantee required. Compliance deadline and exemption arguments discussed.

The Tribunal directed the applicants to deposit Rs. 50 lakhs within 8 weeks and maintain a Bank Guarantee for the appeal. Upon compliance, the pre-deposit ... Stay/dispensation of pre-deposit - Valuation Issues:Waiver of pre-deposit of duty under Section 4A of the Central Excise Act, 1944 for telephone sets supplied to the Department of Telecommunication.Analysis:1. Issue of Duty Assessment: The lower authorities held that telephone sets cleared to the Department of Telecommunication are assessable to duty at the maximum retail price under Section 4A of the Central Excise Act. The contention of the applicant was that duty should be paid on the maximum retail price only if the goods are required to print MRP on the packing under the Standards of Weights and Measures Act, 1976. They argued that since the telephones were for servicing the industry and not for retail sale, they were exempt from mentioning MRP on the packages.2. Exemption Claim: The Revenue argued that the applicants had sought exemption from mentioning MRP on telephones supplied to the Department of Telecommunication under the Standards of Weights and Measures Act, 1976, but the exemption was declined. They relied on a Tribunal decision in a similar case to support their stance that goods cleared with specific markings for the industry are to be assessed under Section 4A of the Central Excise Act.3. Decision and Order: After hearing both sides, the Tribunal noted that the case involved an arguable contention that required detailed examination of evidence. The Tribunal directed the applicants to deposit a sum of Rs. 50 lakhs within 8 weeks and to keep the Bank Guarantee alive during the appeal. Upon compliance with these conditions, the pre-deposit of the remaining duty amount was waived for the appeal hearing, with a reporting compliance date set for the future.In conclusion, the judgment addressed the issue of duty assessment under Section 4A of the Central Excise Act for telephone sets supplied to the Department of Telecommunication. It highlighted the arguments regarding the exemption claim based on the Standards of Weights and Measures Act, 1976, and the decision was made to require a partial deposit while waiving the remaining duty amount for the appeal hearing.