Hearing of appeal without Pre-deposit

PJ/Case Laws/2011-12/1547

Case: S.R.V. PRINT PACK PVT. LTD Versus COMMISSIONER OF CENTRAL EXCISE

Citation: 2012 (276) E.L.T. 15 (DEL)

Issue:- Pre-deposit – cenvat credit was denied on the ground that process did not amount to manufacture – no finding as to why excise duty was collected – Held, appeal should have been heard without insisting on pre-deposit.

Brief Facts:- Appellant are engaged in printing and lamination of polyester film with metalized film/ polyester film. These metalized film are polyester which are further converted into pouches and bags. The Appellant has been treating this activity as manufacturing activity and has been paying the Excise Duty thereupon. The Appellant took the Cenvat Credit on the duty paid on inputs.

However, the Adjudicating Authority reversed the Cenvat Credit and directed the Appellant to pay back the same holding that the aforesaid business activity does not amount to manufacture and therefore the Appellant was not entitled to credit on the duty paid on inputs.

In appeal, the Tribunal on the stay application filled by the appellant directed them to deposit 60% of the amount demanded within the period of eight weeks while waiving the amount of interest and penalty demanded by the Adjudicating Authority.

This appeal before the High Court is filed against the Order of the Tribunal.

Reasoning of Judgment:- The High Court found that the Tribunal has simply followed the orders in view of commonality of facts. It was noted that in the impugned order, the judgment passed in M/s A-One Laminators Pvt Ltd was referred. But the said decision is challenged before the High Court in CEAC No. 15/2011 and the appeal was allowed by the this Court vide order dated 4.07.2011. It was noted that in similar case, stay was granted and pre-deposit was waived.

It was noted that the Adjudicating Authority has not dealt with the issue that if the process was not to be treated as manufacture then why the Excise duty was collected from the appellant. They did not dispute that the excise duty paid by the Appellant is much more then the Cenvat Credit paid. For this reason the High Court were of the opinion that in a matter like this the appeal should be heard without any condition of Pre-deposit.

Decision:- Appeal allowed.

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PJ/Case Laws/2011-12/1547

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