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of <h1>CESTAT Chennai: Waiver of Pre-Deposit Granted for Incomplete Yarn Assessment</h1> <h3>MADURA COATS PVT. LTD. Versus COMMISSIONER OF C. EX., TIRUNELVELI</h3> MADURA COATS PVT. LTD. Versus COMMISSIONER OF C. EX., TIRUNELVELI - 2009 (247) E.L.T. 612 (Tri. - Chennai) Issues:1. Waiver of pre-deposit of duty on yarn used in manufacturing grey unprocessed fabrics.2. Finalization of provisional assessment of yarn contained in exempted fabrics.3. Early hearing application for a demand case of over Rs. Four crores.Analysis:Issue 1: Waiver of Pre-deposit of DutyThe judgment addresses the application for waiver of pre-deposit of duty amounting to Rs. 7,42,187 along with interest, which was confirmed due to the finalization of provisional assessment of yarn used in the manufacture of exempted grey unprocessed fabrics. The Tribunal notes that while the assessment of yarn generated in the manufacture of exempted fabrics was finalized, the assessment of yarn contained in the fabrics and yarn waste arising during the manufacturing process remained pending. The Tribunal acknowledges the incomplete finalization by the excise authorities and agrees with the applicant's representative that the assessment is partial and incomplete. Consequently, the Tribunal holds that a strong prima facie case has been established by the applicant, leading to the waiver of pre-deposit of duty and interest, with a stay on recovery pending the appeal.Issue 2: Finalization of Provisional AssessmentThe judgment further delves into the necessity of finalizing the provisional assessment of yarn contained in the exempted fabrics for the adjudication of a demand case exceeding Rs. Four crores. The Tribunal highlights that the demand case was remanded for a fresh decision after the finalization of provisional assessment. It emphasizes that without the finalization of the provisional assessment of yarn in the exempted fabrics, the demand case cannot be adjudicated. The Tribunal finds merit in the applicant's plea for early hearing of the appeal, especially concerning the finalization of assessment and the challenge against the valuation method of yarn waste by the Commissioner. Consequently, the Tribunal grants the early hearing application and schedules the appeal for a hearing on a specific date.In conclusion, the judgment from the Appellate Tribunal CESTAT, Chennai, underlines the significance of finalizing the assessment of yarn in exempted fabrics, acknowledges the incomplete nature of the assessment by the excise authorities, and grants the waiver of pre-deposit of duty based on a strong prima facie case presented by the applicant. Additionally, the judgment allows for an early hearing of the appeal concerning a demand case exceeding Rs. Four crores, emphasizing the importance of finalizing the provisional assessment for the adjudication process.
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