1995 (9) TMI 150 - AT - Customs

Tribunal defers decision on benefit eligibility pending further proceedings. Appellants granted partial waiver upon deposit.

The Tribunal deferred a conclusive decision on the eligibility for benefit under Notification 171/90 pending further proceedings. The appellants raised ... Stay/Dispensation of pre-deposit Issues:1. Eligibility for benefit under Notification 171/90.2. Interpretation of Clause (b) of the Notification.3. Time bar for duty demand.4. Invocation of Clause (d) of Notification 171/90.5. Financial hardship plea.6. Pre-deposit of duty and recovery stay pending appeal.Analysis:1. Eligibility for benefit under Notification 171/90:The appellants sought waiver of pre-deposit of a differential duty confirmed by the adjudicating authority under Notification 171/90. The argument centered on whether the Aseptic Form Fill Seal Machine used by the appellants qualified as a composite or integrated machine capable of filling, forming, and sealing. The appellants contended that the absence of a specific finding that aseptic packing materials were not manufactured meant they should be entitled to the benefit of the Notification. The Tribunal noted that the eligibility issue would be more appropriately addressed during the appeal hearing.2. Interpretation of Clause (b) of the Notification:The dispute revolved around the interpretation of Clause (b) of Notification 171/90, which mentions the use of aseptic form fill seal machine/machines. The Department argued that only a single machine was covered by the Notification, while the appellants used multiple machines, disqualifying them from the benefit. The Tribunal acknowledged the differing interpretations but deferred a conclusive decision on eligibility pending further proceedings.3. Time bar for duty demand:Regarding the time bar for duty demand, the appellants contested that the demand was beyond the six-month period. They emphasized that the Collector's inspection and certification from Excise authorities supported their position on the limitation issue. The Tribunal found merit in the argument that a Notification clause cannot override statutory provisions, indicating a prima facie case in favor of the appellants on the limitation aspect.4. Invocation of Clause (d) of Notification 171/90:The Department invoked Clause (d) of Notification 171/90 for demanding payment of duty, emphasizing the obligation to pay on demand. The appellants challenged this invocation, pointing out that the show cause notice only referenced a Customs Act provision and not the Notification clause. The Tribunal did not provide a definitive ruling on this issue but directed the appellants to deposit a specified amount pending the appeal.5. Financial hardship plea:Not explicitly mentioned in the judgment; no plea of financial hardship was highlighted in the arguments presented by either party.6. Pre-deposit of duty and recovery stay pending appeal:The Tribunal ordered the appellants to deposit a specific sum within a designated timeframe, with the pre-deposit of the remaining duty amount waived upon compliance. Failure to adhere to this condition would result in the vacation of the stay and dismissal of the appeal. The matter was scheduled for compliance verification on a specified date.This detailed analysis encapsulates the key issues and arguments presented in the legal judgment, showcasing the complexities surrounding the eligibility for benefit under Notification 171/90, the interpretation of its clauses, the time bar for duty demand, and the pre-deposit of duty pending appeal.