Tribunal Waives Pre-deposit of Duty & Penalty

The Tribunal waived the pre-deposit of duty and penalty imposed under Rule 25 of Central Excise Rules, 2002, based on the precedent set by a previous judgment. The Tribunal allowed the stay petition, halting the recovery process during the appeal's pendency.

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Issues:
Application for waiver of pre-deposit of duty and penalty under Rule 25 of Central Excise Rules, 2002.

Analysis:
The appellant filed an application seeking waiver of pre-deposit of 4.5 crores and a penalty of Rs.10.00 Lakhs imposed under Rule 25 of Central Excise Rules, 2002. The appellant's consultant argued that they mistakenly paid duty for February 2010 in March 2010 towards their Hyderabad unit, rectifying the payment later. Subsequently, from March to August 2010, they cleared finished goods using Cenvat Credit, contrary to Rule 8(3A) of the Central Excise Rules, 2002. The consultant cited the Tribunal's practice of allowing stay applications based on the judgment in Baba Viswakarma Engg. Co. (P) Ltd. Vs. CCEx., Ghaziabad, where using Cenvat Credit for duty discharge was deemed acceptable.

The Department's Assistant Commissioner contended that Rule 8(3A) mandates duty discharge through PLA during the default period, prohibiting Cenvat Credit utilization, referencing Precision Fasteners Ltd. Vs. Commissioner of Central Excise judgment by the Hon'ble High Court of Gujrat.

After hearing both parties and examining the records, the Tribunal noted its consistent practice of waiving pre-deposit of duty and penalty based on the precedent set by the judgment in Baba Viswakarma Engg. Co. (P) Ltd. case. Accordingly, the Tribunal waived the pre-deposit of all dues adjudged and stayed the recovery during the appeal's pendency. The stay petition was allowed.

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