2014 (1) TMI 1056 - AT - Central Excise

CESTAT Chennai denies waiver of predeposit for job worker contravening Notification No.83/94-CE.

Ramesh Hitechk Pumps Pvt. Ltd. Versus Commissioner of Central Excise, Coimbatore

The Appellate Tribunal CESTAT CHENNAI denied the application for waiver of predeposit of duty amounting to Rs.4,93,445/- by an applicant identified as a ... Non-compliance of Conditions of Notification No.83/94 – Declarations not filed - Waiver of Pre-deposit – Held that:- The applicant had cleared the goods without the undertaking of the raw material supplier and there is contravention of Notification No.83/94-CE - Assessee failed to show any evidence in this regard – thus, the applicant failed to make out a prima facie case for waiver of pre-deposit of entire amount - the applicant is directed to deposit a sum of Rupees One lakh as pre-deposit – upon such submission rest of the duty to be stayed till the disposal – partial stay granted. Issues:1. Application for waiver of predeposit of duty2. Allegation of non-fulfillment of conditions under Notification No.83/94-CE3. Comparison with a previous Tribunal case4. Reference to a Supreme Court decision on non-compliance of procedure under Central Excise Rules5. Contravention of Notification No.83/94-CE and lack of evidenceAnalysis:The judgment by the Appellate Tribunal CESTAT CHENNAI dealt with an application for waiver of predeposit of duty amounting to Rs.4,93,445/- along with interest and penalty. The applicant, identified as a job worker, faced allegations of the principal manufacturer's failure to file the required declaration under Notification No.83/94-CE. The adjudicating authority upheld the demand citing non-fulfillment of conditions specified under the said notification.During the proceedings, the applicant's advocate referenced a previous Tribunal case involving similar issues, Salem Weld Mesh Vs CCE Salem, where the appeal of the assessee was allowed. Additionally, the Authorized Representative for Revenue presented a decision from the Hon'ble Supreme Court in the case of CCE New Delhi Vs Hari Chand Shri Gopal, concerning non-compliance with the procedure under Chapter X of the erstwhile Central Excise Rules, 1944.The Tribunal observed that the applicant had indeed cleared goods without the necessary undertaking from the raw material supplier, leading to a contravention of Notification No.83/94-CE. While the advocate cited a case where the manufacturing process was accepted, no evidence was presented in the current case to support this claim. Consequently, the Tribunal found that the applicant failed to establish a prima facie case for the waiver of the entire predeposit amount. As a result, the applicant was directed to deposit Rs.1,00,000/- within four weeks, with the remaining amount of tax, interest, and penalty waived upon compliance. The recovery of the balance amount was stayed pending the appeal process.