2014 (1) TMI 1063 - AT - Central Excise

Tribunal Orders Pre-Deposit of Duty with Waiver & Stay on Penalty

M/s JSW Steel Limited Versus Commissioner of Central Excise, Belgaum

The Tribunal directed the appellant to pre-deposit the duty amount within ten weeks, following the Supreme Court's precedent. Upon compliance, waiver and ... COREX gas emitted during the manufacture - Waiver of Pre-deposit – Whether the gas could be classified as carbon monoxide under sub-heading 2811 24 90 of the CETA Schedule and was chargeable to duty - Held that:- Following JSW STEELS LTD. Versus COMMISSIONER OF C. EX., BELGAUM [2010 (2) TMI 527 - CESTAT, BANGALORE] - the demand is entirely within the normal period and, therefore, there is no reason why the appellant should not be directed to pre-deposit the duty - the appellant directed to pre-deposit the entire amount of duty as pre-deposit – Stay not granted. Issues: Application for waiver and stay of duty and penalty imposed on the appellant.Analysis:The appellant, engaged in the manufacture of excisable products, was demanded duty of Rs. 15,70,80,284/- for a specific period and a penalty of Rs. 50 lakhs. The issue revolved around the classification of 'COREX gas' as carbon monoxide under a particular sub-heading of the CETA Schedule. A previous case had ruled against the appellant on this matter. The appellant had filed Civil Appeals before the Supreme Court, which were admitted on the condition of pre-depositing the entire duty amount. The appellant had complied with this condition. In the current case, the Tribunal found the demand to be within the normal period and directed the appellant to pre-deposit the entire duty amount within ten weeks, following the apex court's precedent. Upon compliance, waiver and stay were granted regarding the penalty and interest on duty.