2011 (5) TMI 740 - AT - Central Excise

CESTAT denies waiver for excise duty on cement; manufacturers must make full deposit within 8 weeks

The Appellate Tribunal CESTAT, Chennai denied the application for waiver of predeposit of excise duty of Rs. 9,02,280 against cement manufacturers. The ... Pre-deposit of duty - exemption under Notification No. 3/04 for machinery and components for setting up water supply plants - prima facie case - waiver of interest and penalty upon pre-deposit - stay of recovery conditioned on compliancePre-deposit of duty - exemption under Notification No. 3/04 for machinery and components for setting up water supply plants - prima facie case - waiver of interest and penalty upon pre-deposit - stay of recovery conditioned on compliance - Application for waiver of pre-deposit of excise duty, interest and penalty in respect of cement cleared for setting up of water supply plants. - HELD THAT: - The Tribunal found that no prima facie case for waiver of pre-deposit was made out. The exemption in the Notification applies to items of machinery including instruments, apparatus, appliances, auxiliary equipment and their components/parts required for setting up water supply plants; the language of the Notification is clear and does not prima facie extend to cement. The existence of a certificate from the specified authority stating that the goods were cleared for the intended use is insufficient, on the materials before the Tribunal, to show that cement is covered by the exemption. In view of this conclusion, the Tribunal directed pre-deposit of the duty amount within eight weeks, and held that upon such deposit the pre-deposit of interest and penalty would stand waived and recovery thereof stayed pending the appeal. The Tribunal also warned that failure to comply would result in vacation of the stay and dismissal of the appeal without further notice.Application for waiver of pre-deposit refused; directed pre-deposit of the duty within eight weeks, with waiver of interest and penalty and stay of recovery upon such deposit; non-compliance to lead to vacation of stay and dismissal of appeal.Final Conclusion: No prima facie entitlement to exemption was found; pre-deposit of duty directed within the time specified, on which deposit interest and penalty are waived and recovery stayed pending appeal, failing which stay will be vacated and appeal dismissed. The Appellate Tribunal CESTAT, Chennai heard an application for waiver of predeposit of excise duty of Rs. 9,02,280 confirmed against cement manufacturers. The Tribunal found no prima facie case for waiver as the exemption under Notification No. 3/04 does not cover cement cleared for setting up water supply plants. The Tribunal directed predeposit of the entire duty amount within eight weeks, with interest and penalty amounts waived upon deposit. Failure to comply would result in vacation of stay and dismissal of the appeal. Compliance to be reported on 8th August, 2011.