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of <h1>Tribunal Waives Pre-deposit & Stays Duty Recovery Pending Appeal, Resolves Capacity Determination Conflict</h1> The Tribunal granted the appellants total waiver from pre-deposit and stayed the recovery of the differential duty amount until the appeal's final ... Stay/Dispensation of pre-deposit Issues:1. Determination of annual capacity of production under the Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998.2. Contrary views by Northern Bench and Southern Bench of CEGAT on inclusion of length of galleries in determining annual capacity.3. Appeal against Commissioner's order and Stay petition.4. Modification of Stay order based on conflicting decisions.5. Total waiver from pre-deposit granted to the appellants.6. Stay on recovery till disposal of the appeal.Analysis:1. The appellants, independent processors of textiles, applied for the fixation of annual capacity under the Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998. The Commissioner of Central Excise determined their annual production capacity, including the length of galleries used in the process, leading to a differential duty liability.2. The appellants appealed the Commissioner's order and filed a Stay petition. The Tribunal directed them to deposit the amount but later, during a compliance hearing, the appellants cited conflicting decisions by the Northern Bench and the Southern Bench of CEGAT regarding the inclusion of gallery length in annual capacity determination.3. The appellants relied on the decision in EID Parry (I) Ltd. v. CCE, Madras, which allowed modification of a Stay order based on subsequent Tribunal decisions favoring the assessee. The appellants filed a Miscellaneous petition seeking modification of the earlier order for total waiver of the pre-deposit amount.4. Considering the conflicting decisions of the Northern and Southern Benches, the Tribunal modified the Stay order, granting the appellants total waiver from pre-deposit and staying the recovery of the amount until the appeal's disposal. This decision was based on the precedent set in EID Parry (I) Ltd. case.5. The Tribunal scheduled the matter for final disposal on a later date after granting the total waiver to the appellants and staying the recovery of the differential duty amount.6. The Miscellaneous petition filed by the appellants for modifying the Stay order was disposed of in favor of the appellants, allowing total waiver from pre-deposit and staying the recovery until the appeal's final disposal.
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