Tribunal directs partial deposit in stay petition for waiver of pre-deposit on finished goods dispute.

The Appellate Tribunal CESTAT AHMEDABAD, in a judgment by Mr. M.V. Ravindran, addressed a stay petition seeking the waiver of pre-deposit of a confirmed amount, interest, and penalty related to the discharge of 10% of finished goods by a job worker. The tribunal found the issue arguable and directed the appellant to deposit a specific amount within a set period. Compliance would allow for waiver of pre-deposit of the remaining amounts, with recovery stayed until the appeal's final disposal. The judgment underscored the necessity for detailed examination of the issue and compliance with specified conditions for the appeal process.

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Issues:
- Stay petition for waiver of pre-deposit of confirmed differential amount, interest, and penalty.
- Discharge of 10% of the value of finished goods by a job worker.

Analysis:
The judgment by the Appellate Tribunal CESTAT AHMEDABAD, delivered by Mr. M.V. Ravindran, addressed a stay petition seeking the waiver of pre-deposit of a confirmed amount along with interest and penalty. The issue at hand pertained to the discharge of 10% of the value of finished goods by a job worker. The tribunal, after hearing both sides and examining the records, noted the contention of the appellant regarding the discharge of 10% based on actual consumption of materials and job charges agreed upon with the principal manufacturer.

Upon thorough consideration, the tribunal found the issue to be arguable and requiring detailed examination during the final disposal of the appeal. The key point of contention was whether the aggregate value for discharging 10% of the goods should include the value of inputs supplied by the principal manufacturer. Consequently, the tribunal directed the appellant to deposit a specific amount within a stipulated period and report compliance. Upon compliance, the application for waiver of pre-deposit of the remaining amounts was allowed, and recovery stayed until the appeal's final disposal.

In conclusion, the judgment highlighted the need for detailed scrutiny of the issue concerning the discharge of 10% of the goods' value by a job worker, emphasizing the requirement for the appellant to meet specific conditions for the appeal's hearing and disposal.

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