Tribunal Order: Deposit 25% Excise Duty, Balance Waived on Compliance. Recovery Stayed Pending Appeal.

The Tribunal directed the applicant to deposit 25% of the Central Excise duty within a specified timeframe, with the balance dues waived upon compliance. The recovery of the remaining amount was stayed during the appeal's pendency. The decision was made due to the applicant's failure to establish a case for full waiver of pre-deposit, aligning with legal precedents and arguments presented during the proceedings.

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Issues:
Waiver of pre-deposit of Central Excise duty, penalty imposed under Section 11AC of the Central Excise Act, 1944, penalty imposed under Rule 26 of the Central Excise Rules, 2002.

Analysis:
Two separate applications were filed for the waiver of pre-deposit of Central Excise duty and penalties imposed on two different entities. The first applicant manufactured goods on a job work basis, availed Cenvat credit of duty paid on chassis, and utilized it for duty payment. The contention was that the assessable value of the fully built vehicle was correctly determined based on relevant rules and judicial decisions. On the contrary, the Revenue argued that the assessable value was undervalued, leading to the demand of duty and penalties. The issue of valuation had been previously decided by the Larger Bench. The Tribunal found that the applicant did not add 10% of the cost as notional profit, resulting in under-valuation, in contrast to the decision of the Larger Bench regarding the assessable value of fully body-built vehicles.

The Tribunal noted that the applicant's case was in line with the Larger Bench's decision. Consequently, the applicant was directed to deposit 25% of the duty within a specified timeframe, with the balance dues waived upon compliance. The recovery of the remaining amount was stayed during the appeal's pendency. The decision was based on the applicant's failure to establish a case for full waiver of pre-deposit, considering the legal precedents and arguments presented during the proceedings.

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