2011 (1) TMI 1372 - AT - Central Excise

Tribunal grants waiver for manufacturing process, denies out-of-turn hearing

Global Wool Alliance Pvt. Ltd. Versus Commissioner of C. Ex., Thane-I

Global Wool Alliance Pvt. Ltd. Versus Commissioner of C. Ex., Thane-I - 2015 (330) E.L.T. 513 (Tri. - Mumbai) Issues:1. Waiver of reversal of credit, interest, and penalty confirmed by the impugned order.2. Whether the 'Wool Grease' is a final product or not.3. Application for out-of-turn hearing of the appeal based on the amount involved.Analysis:Issue 1: The appellant sought waiver of reversal of credit, interest, and penalty confirmed by the impugned order. The appellant, a manufacturer of various products, was issued a show cause notice for the reversal of credit on certain products cleared without payment of duty. The appellant argued that the by-product, 'grease,' exempt from duty, did not require credit reversal. The Tribunal, after hearing both sides, found merit in the appellant's contention that the final products were wool tops/fabrics, not grease. Consequently, the Tribunal waived the requirement of pre-deposit of the entire demand, interest, and penalty, staying the demand during the appeal.Issue 2: The central question revolved around whether the 'Wool Grease' in question constituted a final product or not. The appellant contended that the grease was a by-product exempt from duty and cited legal precedents to support their argument. On the other hand, the Department argued that the demand against the appellant should be sustained as the grease was a result of the manufacturing process. The Tribunal, considering the manufacturing process and final products, sided with the appellant, acknowledging that the grease was not the final product but a necessary step in the manufacturing process of wool tops/fabrics.Issue 3: The appellant also applied for an out-of-turn hearing of the appeal due to the significant amount involved. However, the Tribunal noted that the duty amount in question was relatively lower compared to other cases pending before the Tribunal. Consequently, the application for early hearing was rejected, and the matter was directed to be listed in its own course, emphasizing that the duty amount did not warrant prioritization for an out-of-turn hearing.In conclusion, the Tribunal granted the appellant's request for waiver of credit reversal, interest, and penalty, recognizing the nature of the manufacturing process and the final products. The application for out-of-turn hearing was denied based on the duty amount involved, ensuring the matter would proceed in the regular course of proceedings.