Tribunal dismisses appellant's case on duty penalty for 'Aluminium Dross' export, orders pre-deposit.

The Tribunal found no prima facie case for the appellant regarding the duty and penalty imposed for clearing 'Aluminium Dross' as a 100% Export Oriented Unit. The appellant was directed to pre-deposit Rs. 1,50,000 within six weeks, with compliance to be reported to the Deputy Registrar by 10.7.2013. Waiver and stay of recovery would be granted for the remaining dues upon compliance.

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Issues involved:
Waiver of pre-deposit and stay of recovery in respect of duty and penalty imposed on the appellant for clearance of 'Aluminium Dross' as a 100% Export Oriented Unit (E.O.U.).

Analysis:
The appellant sought waiver of pre-deposit and stay of recovery for duty of Rs. 4,33,480/- and penalty of Rs. 45,000/- imposed on them for clearing 'Aluminium Dross' from January to August 2010. The appellant, being a 100% E.O.U., paid duty of Excise on the basis of transaction value, not as per E.O.U. norms. The demand was for differential duty based on the proviso to Section 3(1) of the Central Excise Act read with Notification No. 23/2003-CE dated 31.3.2003. The Tribunal found no prima facie case for the appellant, holding them liable to pay duty quantified as per Customs duties under the proviso and notification. The claim that 'Aluminium Dross' was outside the E.O.U. Scheme was rejected, noting the appellant paid duty albeit incorrectly.

The Tribunal directed the appellant to pre-deposit Rs. 1,50,000/- within six weeks, considering the initial offer of Rs. 1,00,000/- inadequate. Compliance was to be reported to the Deputy Registrar by 10.7.2013, with the Deputy Registrar to inform the Bench by 17.7.2013. Upon compliance, waiver and stay would be granted for the remaining dues.

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