2009 (4) TMI 598 - AT - Customs

Exemption conditions must be considered together. Waiver denied, appellant directed to deposit full amount.

RALLISON ELECTRICALS PVT. LTD. Versus COMMISSIONER OF C. EX., JAIPUR-I

The Tribunal held that exemption notifications must be read as a whole, and exemptions cannot be granted ignoring the attached conditions. Therefore, the ... Stay/Dispensation of pre-deposit - Interpretation of statute Issues involved: Interpretation of Notification No. 6/2006-C.E. and Notification No. 21/2002-Cus for exemption from Excise Duty in relation to goods required for setting up a mega power project.Summary:Issue 1: Interpretation of Notification No. 6/2006-C.E. and Notification No. 21/2002-CusThe appellant contended that goods manufactured by them are entitled to total exemption from Excise Duty u/s Notification No. 6/2006-C.E. as the goods required for setting up a mega power project are exempted from Customs Duty u/s Notification No. 21/2002-Cus. However, the authority insisted on compliance with condition No. 86 under Notification No. 21/2002-Cus. The Tribunal noted that the exemption from Customs Duty under Notification No. 21/2002-Cus. for goods for a mega power project is subject to condition No. 86. The Tribunal held that exemption notifications must be read as a whole, and exemptions cannot be granted ignoring the attached conditions. Therefore, the Tribunal rejected the appellant's contention for waiver of pre-deposit required in the appeal.Issue 2: Financial Hardship and Grant of WaiverThe Tribunal found that the appellant did not plead any financial hardship if required to deposit the entire amount demanded under the impugned order. Consequently, the Tribunal concluded that no case was made out for granting a waiver of the pre-deposit. The application for stay was disallowed, and the appellant was directed to deposit the entire amount within eight weeks. The application was disposed of, with a compliance reporting scheduled for 30-6-2009.