2013 (12) TMI 686 - AT - Central Excise

Waiver of Pre-Deposit in Central Excise Case Upheld

The Tribunal allowed the waiver of pre-deposit of interest and penalties for the appellant in a Central Excise duty case, citing a favorable judgment. The ... Differential Central Excise duty - Freight collected less the actual freight paid – Waiver of pre-deposit – Held that:- Following BARODA ELECTRIC METERS LTD. Versus COLLECTOR OF CENTRAL EXCISE [1997 (7) TMI 126 - SUPREME COURT OF INDIA] - the appellant has deposited entire amount of differential Central Excise duty confirmed by lower authorities – Thus, the appellant has made out a case for waiver of pre-deposit of interest and penalties involved - the application for waiver of pre-deposit till the disposal – Stay granted. Issues Involved:Differential Central Excise duty payable on freight collected less actual freight paid, waiver of pre-deposit of interest and penalties, detention order of raw material, release of goods to the appellant.Analysis:1. Differential Central Excise Duty: The appellant submitted that the issue involved was the differential Central Excise duty on freight collected minus actual freight paid. The appellant had deposited the entire duty liability and contested the issue on merit and limitation. The Tribunal noted that the issue seemed to be covered in favor of the appellant by a judgment of the Hon'ble Apex Court. Considering that the appellant had paid the entire differential duty confirmed by lower authorities, the Tribunal allowed the application for waiver of pre-deposit of interest and penalties. The recovery of interest and penalties was stayed until the appeal's disposal.2. Detention Order and Release of Goods: The Additional Commissioner confirmed that the appellant had deposited the entire duty liability. The Tribunal found that the detention order issued by the Superintendent was unwarranted since the appellant had made a case for the waiver of pre-deposit of interest and penalties. Consequently, the Tribunal set aside the detention order dated 04.03.2013 and directed the lower authorities to release the detained goods to the appellant for use in the manufacture of the final product.3. Conclusion: The Tribunal disposed of the Stay Petition by allowing the waiver of pre-deposit of interest and penalties, staying the recovery thereof until the appeal's disposal, and directing the release of the detained goods to the appellant. The judgment provided relief to the appellant based on the merit of the case and the payment of the entire duty liability, aligning with the precedent set by the Hon'ble Apex Court.