Waiver granted for duty demand, interest, and penalty on pre-laminated bagasse board

The Tribunal granted the waiver of pre-deposit for duty demand, interest, and penalty, amounting to Rs. 71,73,188/-, for manufacturing pre-laminated bagasse board under notification no.12/2012-CE. It held that the applicant was entitled to exemption based on relevant notifications and previous judicial decisions, directing the appeal for final disposal due to the recurring nature of the issue and alignment with settled legal positions.

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Issues:
Waiver of pre-deposit of duty demand under notification no.12/2012-CE for manufacturing pre Laminated Bagasse Board.

Analysis:
The applicant sought waiver of pre-deposit of duty demand amounting to Rs. 71,73,188/- along with interest and penalty, claiming exemption under notification no.12/2012-CE for manufacturing pre Laminated Bagasse Board. The Revenue contended that the applicant was not entitled to the exemption and issued a show cause notice leading to the impugned demands. The applicant argued that prior to notification no. 12/2012-CE, another notification no. 6/2006-CE was in force exempting Bagasse board from duty payment. They referred to a Revenue clarification supporting their exemption claim and cited a High Court decision where a similar product was granted exemption under the earlier notification. The Revenue argued that the product in question was not Bagasse board but pre-laminated bagasse board, hence not eligible for the exemption.

The Tribunal noted that as per the relevant notifications and clarifications, the bagasse board was exempted from duty payment. Referring to the High Court decision and the clarification issued by CBEC, it was established that pre-laminated bagasse board was entitled to exemption under the earlier notification. The Tribunal observed that the applicant had made a case for complete waiver of pre-deposit. Consequently, the requirement of pre-deposit of the duty, interest, and penalty was waived, and recovery stayed during the appeal's pendency. The Tribunal also directed the registry to list the appeal for final disposal based on the contention that the issue was covered by the High Court decision and recurring show cause notices.

In conclusion, the Tribunal granted the waiver of pre-deposit based on the applicant's entitlement to exemption under the relevant notifications and previous judicial decisions. The Tribunal also acknowledged the recurring nature of the issue and directed the appeal to be listed for final disposal, considering the settled legal position.

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