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of <h1>Tribunal Rules on Duty Waiver Request, Requires Partial Pre-Deposit for Compliance</h1> <h3>SP. PACKAGINGS Versus COMMISSIONER OF CENTRAL EXCISE, JAIPUR</h3> The Tribunal found the appellants' case for full waiver of duty pre-deposit weak due to prolonged use of exchanged dyes, directing M/s. S.P. Packagings to ... Stay/Dispensation of pre-deposit - SSI Exemption Issues: Two applications for waiver of pre-deposit of duty.Analysis:1. Issue of Misuse of SSI Exemption Notification:- The appellants, two manufacturing companies, inadvertently exchanged their dyes during repair, resulting in the production of PET bottles with each other's brand names.- The Additional Commissioner upheld the duty demand, citing the misuse of the SSI Exemption Notification due to the branding mix-up.- The advocate argued that the mistake arose from the exchanged dyes and referenced a Board's Circular to support their case.2. Contentions and Counter-Contentions:- The advocate contended that the error was due to the exchanged dyes, which went unnoticed initially due to their identical size and shape.- The Departmental Representative opposed, stating that the continued use of the dyes for 20 days indicated awareness of the mistake.- The Circular cited by the advocate was challenged as inapplicable to the branding issue on the PET bottles.3. Judgment and Direction:- The Tribunal considered both parties' submissions and found the appellants' case for full waiver of duty pre-deposit weak due to the prolonged use of the exchanged dyes.- It concurred with the Departmental Representative regarding the inapplicability of the Board's Circular to the case.- Consequently, M/s. S.P. Packagings was directed to deposit Rs. 40,000 and M/s. B.R. Oil Mills to deposit Rs. 20,000 within six weeks.- Upon compliance, the remaining duty amount would be waived, and recovery stayed during the appeal process, with a follow-up compliance date set for both appeals.This judgment highlights the importance of diligence in detecting errors and the applicability of legal provisions in cases of inadvertent mistakes leading to duty demands. The Tribunal's decision balances the interests of both parties by requiring partial pre-deposit while offering a waiver for the remaining duty amount, subject to compliance within the specified timeline.
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