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Tribunal Waives Predeposit for Duty & Penalty, Stays Recovery The Tribunal waived the predeposit requirement of duty and penalty amounting to Rs.92,09,289/- imposed under Rule 25 of Central Excise Rules, 2002. The ...
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Tribunal Waives Predeposit for Duty & Penalty, Stays Recovery
The Tribunal waived the predeposit requirement of duty and penalty amounting to Rs.92,09,289/- imposed under Rule 25 of Central Excise Rules, 2002. The Tribunal relied on past precedents and decided to stay the recovery during the appeal process, granting relief to the appellant.
Issues: Application for waiver of predeposit of duty and penalty under Rule 25 of Central Excise Rules, 2002.
The judgment pertains to an application for waiver of predeposit of duty amounting to Rs.92,09,289/- and an equal penalty imposed under Rule 25 of Central Excise Rules, 2002. The appellant's consultant argued that the default in duty payment for November 2004 was rectified by subsequent cash payment. The consultant cited a previous Tribunal order and two cases, SAM Turbo Industry Ltd. and Baba Viswakarma Engg. Co. (P) Ltd., to support the argument that payment through cenvat credit should be accepted. On the other hand, the Department's representative contended that the relevant rule mandates duty discharge through PLA during the defaulting period, prohibiting cenvat credit utilization. The Department relied on the decision of the Hon'ble High Court of Gujarat in the Precision Fasteners Ltd. case. In response, the consultant emphasized that the cited judgment was not applicable as the duty for the default period was discharged subsequently.
After hearing both sides and examining the records, the Tribunal noted that it has consistently waived the requirement of predeposit of duty and penalty in similar cases, following the precedent set in the Baba Viswakarma Engg. Co. (P) Ltd. case. Therefore, the Tribunal decided to waive the predeposit requirement of all dues adjudged and stayed the recovery during the appeal's pendency. The stay petition was allowed, providing relief to the appellant in this matter.
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