Appellate Tribunal grants Rs.6.88 Crores duty waiver & penalty relief under Central Excise Act

The Appellate Tribunal CESTAT KOLKATA granted a total waiver of the duty amounting to Rs.6.88 Crores and an equal penalty imposed under Section 11AC of the Central Excise Act, 1944. The Tribunal found that the appellant had established a prima facie case for the waiver based on precedents cited, including the cases of Sujana Metal Products Ltd. and Steel Authority of India Ltd. Recovery was stayed during the appeal process.

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Issues: Application for waiver of pre-deposit of duty and penalty under Section 11AC of the Central Excise Act, 1944.

Analysis:
1. The appellant sought waiver of pre-deposit of duty amounting to Rs.6.88 Crores and an equal penalty imposed under Section 11AC of the Central Excise Act, 1944.
2. The advocate for the appellant argued that the department alleged that clearances to S.E.Z. developers were not exports covered under Rule 6(6) of Cenvat Credit Rules, 2004, requiring payment of 10% of the goods' price. The advocate cited precedents, including the case of Sujana Metal Products Ltd. vs. CCE, Hyderabad and the judgment of the Hon'ble High Court of Chhattisgarh in the case of Union of India vs. Steel Authority of India Ltd., to support their case.
3. The Assistant Commissioner (A.R.) reiterated the findings of the Commissioner.
4. The Tribunal noted that the issue was previously decided in the case of Sujana Metal Products and by the High Court of Chhattisgarh in the case of Steel Authority of India Ltd. Consequently, the Tribunal found that the appellant had established a prima facie case for a total waiver of the dues adjudged. As a result, all dues were waived, and recovery was stayed during the pendency of the appeal. The stay petition was allowed.

This judgment by the Appellate Tribunal CESTAT KOLKATA involved an application for the waiver of pre-deposit of duty and penalty under the Central Excise Act, 1944. The appellant argued that the clearances to S.E.Z. developers should be considered exports under Rule 6(6) of Cenvat Credit Rules, citing relevant precedents. The Tribunal, considering the precedents cited, granted a total waiver of the dues adjudged and stayed the recovery during the appeal process.

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