2014 (3) TMI 518 - AT - Central Excise

Stay Granted: Waiver of Pre-Deposit for Indian Wood Products - Duty, Interest, Penalty

The Tribunal, consisting of Ms. Archana Wadhwa and Mr. Sahab Singh, granted the stay petitions filed by M/s Indian Wood Products Company Ltd. and other ... Waiver of pre-deposit - Levy of duty on intermediate products, manufactured by Job Worker, used by the assessee in exempted final products - Benefit of exemption Notification No. 76/1986 - Captive consumption - manufacture of catechu like substance containing an abundance of catechins by Job worker - manufacture of katha as final product - Held that:- It is settled law that when a principal manufacturer gets his goods manufactured from a job worker on job work basis and the transaction between them are on principal to principal basis, it is the job worker who would be liable to pay duty not the principal manufacturer - Following decision of assessee's own previous case [2012 (9) TMI 708 - CESTAT, NEW DELHI] - stay granted. Issues:Waiver of pre-deposit and stay of recovery of duty, interest, and penalty imposed by lower authorities.Analysis:The case involved M/s Indian Wood Products Company Ltd. receiving Show Cause Notices for allegedly wrongly availing exemption benefits related to the manufacture of catechu-like substance. The Notices covered the period from April 2010 to February 2011. The Commissioner confirmed the Notices and imposed penalties on the company and specific individuals. The applicants sought waiver of pre-deposit and stay of recovery of duty, interest, and penalty. The main argument presented was that the catechin was manufactured by job workers and used for the production of katha, which is exempt from Central Excise duty. The Tribunal had previously granted unconditional stay in a similar case, and the applicants argued for the same treatment in this instance.The Advocate for the applicants contended that since the facts of the present case mirrored those of the earlier case where a stay was granted, pre-deposit should be waived. On the other hand, the Revenue's representative argued that the Commissioner had already determined that duty payment was necessary, thus suggesting a deposit for the appeal hearing. After considering both arguments, the Tribunal noted that the issue in the present case was identical to the one previously decided in the stay order dated July 25, 2012. Consequently, the Tribunal decided to grant the stay petitions and waive the pre-deposit of duty, interest, and penalty until the appeals were disposed of.In conclusion, the Tribunal, comprising Ms. Archana Wadhwa and Mr. Sahab Singh, allowed the stay petitions filed by M/s Indian Wood Products Company Ltd. and other applicants, thereby waiving the pre-deposit of duty, interest, and penalty until the appeals were resolved.