2009 (6) TMI 706 - AT - Central Excise

Tribunal orders 50% deposit on duty, upholds inclusion of bought-out-items in assessable value. Duty waiver not granted.

WALCHANDNAGAR INDUSTRIES LTD. Versus COMMR. OF C. EX., PUNE-III

The Tribunal directed the appellants to deposit 50% of the duty demanded under the impugned order dated 17-7-2008, staying the remaining amount until ... Stay/Dispensation of pre-deposit - Quantum of pre-deposit - Valuation Issues:1. Stay of operation of the impugned order dated 17-7-2008.2. Dispensation of the requirement of pre-deposit of the entire duty, interest, and penalty amount.3. Inclusion of value of bought-out-items in the assessable value of electrical centrifuges.4. Prima facie case for total waiver of demand of duty.5. Quantum of the amount to be deposited pending final disposal of the appeal.Analysis:1. The appellants sought a stay of the operation of the impugned order dated 17-7-2008 and dispensation of the requirement of pre-deposit of the entire duty, interest, and penalty amount. The Tribunal considered a previous matter between the same parties where a stay was granted subject to a deposit of one-fourth of the duty demanded. The Tribunal directed the appellants to deposit 50% of the duty demanded under the impugned order, staying the rest of the amount until final disposal of the appeal. Compliance was required within six weeks.2. The issue revolved around the inclusion of the value of bought-out-items such as electric motors and control panels in the assessable value of electrical centrifuges manufactured and cleared by the appellants. The Tribunal noted that the bought-out-items were deemed essential for the electrical centrifuges manufactured by the appellants based on confirmations from the Chief Design Engineer and the appellants themselves. The Tribunal found that the appellants had failed to establish a prima facie case for a total waiver of the duty demanded.3. The Tribunal referenced a previous order where it was established that the bought-out-items were integral to the functioning of the electrical centrifuges. The Tribunal rejected the contention that the appellants did not need to include the value of these items in the assessable value. Despite the appellants' argument for a similar criteria for deposit as in the previous case, the Tribunal did not find a prima facie case for a total waiver of the duty demanded in the current matter.4. The Tribunal considered the stand of the respondent and directed the appellants to deposit 50% of the duty demanded under the impugned order, with the remaining amount stayed until final disposal of the appeal. The Tribunal emphasized that the earlier decision regarding the deposit amount was not challenged by the department. The appellants were given six weeks to comply, with a reporting deadline set for confirmation of compliance on 22-7-2009. The application for stay was thus disposed of.