2005 (4) TMI 472 - AT - Central Excise

Summary

Issues Involved: Duty demand on clearance of VCD player without printing MRP, non-charging of price by the appellants, pre-deposit requirement, waiver of penalty amount, dismissal of appeal for non-compliance.

Duty Demand on Clearance of VCD Player without Printing MRP:
The judgment confirms a duty demand of Rs. 2,96,640/- against the appellants for clearing VCD players without printing the Maximum Retail Price (MRP) and including them with certain TV sets. The clearance did not meet the conditions for multi-piece packages as per Board Circular No. 673/64/02-CX. The Judge finds no illegality in the impugned order and rejects the appellants' argument that not charging a price from buyers exempts them from duty payment. The Judge emphasizes that failure to charge a price does not absolve the appellants from duty liability at the time of clearance, stating that they cannot claim any benefit from their own fault. Consequently, the appellants are directed to pre-deposit the entire duty amount within eight weeks to proceed with the appeal.

Pre-Deposit Requirement and Waiver of Penalty Amount:
The judgment mandates the appellants to pre-deposit the full duty amount within eight weeks from the date of the order. Upon compliance with the pre-deposit requirement, the penalty amount of Rs. 40,000/- will be waived until the appeal is disposed of. However, failure to make the pre-deposit within the stipulated timeframe will result in the dismissal of the appeal under Section 35F of the Act. The Judge sets a deadline for compliance and instructs the reporting of the same by a specified date.

Dismissal of Appeal for Non-Compliance:
In case of the appellants' failure to pre-deposit the entire duty amount within the given timeframe, the judgment states that their appeal will be dismissed under Section 35F of the Act. This provision underscores the importance of complying with the pre-deposit requirement to ensure the continuation of the appeal process. The Judge emphasizes the consequences of non-compliance, highlighting the dismissal of the appeal as a legal outcome for failing to meet the pre-deposit obligation.

This detailed analysis of the judgment from the Appellate Tribunal CESTAT, New Delhi underscores the key issues of duty demand on VCD player clearance, the pre-deposit requirement, waiver of penalty amount, and the potential dismissal of the appeal for non-compliance. The judgment's thorough examination of the facts and legal principles involved provides clarity on the obligations imposed on the appellants and the consequences of non-adherence to the specified directives.