Tribunal orders Public Sector Undertaking to deposit Rs.5.00 crores within 8 weeks

The Tribunal directed the appellant, a Public Sector Undertaking, to deposit Rs.5.00 crores within eight weeks, balancing the interest of revenue and the appellant's request for waiver of pre-deposit of duty amounting to Rs.27.04 crores and an equal penalty. The decision was based on the acknowledgment of a common issue of classification, the dismantling of facilities for PCM production, and the appellant's admission that PCM and CTPD were the same product. The Tribunal considered the long-pending nature of the dispute and previous waivers, ultimately requiring the deposit to safeguard revenue interests.

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Issues:
Waiver of pre-deposit of duty and penalty for the applicant.

Analysis:
The appellant sought waiver of pre-deposit of duty amounting to Rs.27.04 crores and an equal penalty. The appellant, a Public Sector Undertaking, argued for waiver based on a previous order by the Tribunal for a similar issue in an earlier period. The Department, represented by the Special Counsel, acknowledged the common issue of classification of CTPD in all connected appeals. The Department contended that despite the appellant's claim that CTPD and PCM are different products, their own reply indicated otherwise. The Department emphasized the need to safeguard the interest of revenue even in the presence of a strong prima facie case. The appellant's counsel countered by stating that facilities for PCM production had been dismantled, and previous replies had addressed the issue effectively. The Tribunal noted the pending appeals on the same issue from 1998 to 2011 and the previous waiver of pre-deposit due to the long-pending nature of the classification dispute. The Tribunal considered the appellant's admission in a reply that PCM and CTPD were the same product, leading to the decision to direct a deposit of Rs.5.00 crores within eight weeks to balance the interest of revenue and the appellant being a Public Sector Undertaking.

This detailed analysis of the judgment highlights the arguments presented by both parties, the Tribunal's considerations, and the final decision regarding the waiver of pre-deposit of duty and penalty for the appellant.

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