2009 (10) TMI 720 - AT - Central Excise

Tribunal Waives Pre-Deposit & Stays Recovery Pending Appeal

HYVA INDIA LTD. Versus COMMISSIONER OF CENTRAL EXCISE, BANGALORE

The Tribunal granted the waiver of pre-deposit amounts and stayed the recovery pending appeal disposal in a case involving demands confirmed against the ... - Issues involved: Stay petition against waiver of pre-deposit amounts u/s 11A(1) of Central Excise Act, 1944, interest u/s 11AB, penalties u/s 11AC, Rule 25, and Rule 27.Demand Confirmation: The Adjudicating Authority confirmed demands against the appellants due to reworking material cost to include transportation and other expenses till raw material reaches job worker's premises.Appellant's Submission: The appellants, engaged in manufacturing motor vehicles, argued that the value for duty liability on body building should be based on Net Dealer's Price without additional expenses like freight and insurance, citing precedents.Revenue's Argument: Revenue contended that all expenses for supplying inputs to the job worker, including transportation costs, should be added to the value based on the Supreme Court's decision in Ujagar Prints case.Tribunal's Decision: The Tribunal found that the demand was confirmed due to the appellant not considering additional expenses in the cost of inputs. As the appellant is a job worker, Section 4(1)(b) applies for assessable value, and duty paid by TML is based on Central Excise Valuation Rules.Assessable Value: The assessable value of final products cleared by the appellant should be based on the cost of inputs received by TML, which was correctly considered. The Tribunal noted that the appellant made a prima facie case for waiving the pre-deposit amounts, and the condition for pre-deposit was waived until the appeal's disposal.Conclusion: The Tribunal granted the waiver of pre-deposit amounts and stayed the recovery pending appeal disposal. The judgment was pronounced in open court on 23-10-2009.