Belated declaration under Notification No. 214/86 did not defeat prima facie compliance where job-work inputs were captively used for dutiable manufacture.

Notification No. 214/86 was treated as substantially complied with where the supplier's declaration was filed belatedly but the job-work material was shown to have been captively used in the supplier's factory for manufacture of dutiable finished goods. On that prima facie basis, the pre-deposit requirement was waived and recovery of duty, interest and penalty was stayed pending appeal.

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Issues: Whether waiver of pre-deposit and stay of recovery were justified where the declaration required under Notification No. 214/86 was filed belatedly but the notification conditions appeared to be substantially satisfied.

Analysis: The applicant was engaged in job work in relation to goods falling under Chapter 72 of the Central Excise Tariff Act, 1985. The demand arose on the ground that the supplier had not furnished the declaration contemplated by Notification No. 214/86 in time. The record showed that the supplier later filed the declaration and sought condonation of delay, and the department verified that the job-work material was captively used in the supplier's factory for manufacture of dutiable finished goods. On that prima facie view, the requirement of the notification appeared to have been met notwithstanding the delayed filing.

Conclusion: Waiver of pre-deposit was granted and recovery of duty, interest and penalty was stayed pending the appeal.

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