Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2014 (2) TMI AT This

  • Login
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2014 (2) TMI 588 - AT - Central Excise


Issues: Application for waiver of predeposit of duty, interest, and penalty imposed on the Applicant.

Analysis:
1. The Applicant sought waiver of predeposit of a substantial amount along with interest and penalty. The Applicant was engaged in procuring and selling electrical equipment to manufacturers of excisable goods. Initially registered as a dealer, they later obtained Central Excise Registration as a manufacturer. The Applicant argued that the activities conducted on the impugned items before sale did not amount to manufacture, hence they were not liable to pay duty for a specific period.

2. The Revenue, represented by the ld. Adjudicating Commissioner, contended that the Applicant was indulging in manufacturing excisable goods without discharging central excise duty. The Commissioner's detailed order highlighted that the Applicant had taken Central Excise License as a manufacturer for a subsequent period. The investigation included statements from various individuals associated with the Applicant, confirming the manufacturing processes involved. The Commissioner found no difference in the processes carried out when the Applicant was registered as a dealer or as a manufacturer.

3. The statements of key personnel, including the Production-in-Charge and Director of the assessee company, revealed the detailed processes involved in manufacturing the products. The Quality Control Department's confirmation of the production process further supported the Revenue's contention. The Commissioner concluded that the Applicant was not merely engaged in trading activities but was processing goods further to make them marketable, resulting in products classifiable under the Central Excise Tariff Act.

4. The Tribunal, after considering the arguments from both sides, found that the Applicant failed to establish a case for full waiver of the dues adjudged. The Tribunal directed the Applicant to make a predeposit of 25% of the duty within a specified timeframe and submit a compliance report. Upon deposit, the balance dues adjudged would be waived, and recovery stayed during the pendency of the Appeal. Failure to comply with the deposit requirement would lead to the dismissal of the Appeal without further notice.

This detailed analysis of the judgment highlights the key arguments presented by both parties, the findings of the Adjudicating Commissioner, and the final decision of the Tribunal regarding the waiver of predeposit and the liability of the Applicant for central excise duty.

 

 

 

 

Quick Updates:Latest Updates