ORDER
V.K. Agrawal, Member (T)
1. This is application by M/s. Eveready Industries India Ltd. for waiver of pre-deposit of Central Excise duty amounting to Rs. 4,72,232/- and penalty of Rs. One lakh on the ground that they had not paid the duty on waste and scrap of carbon electrodes.
2. Shri Ravi Raghavan, learned Consultant, submitted that the scrap generates at the stage of explosions of Arc carbon due to breakage or binding strips; that Central Excise Tariff does not recognize any such waste and scrap; that in their own matter, the Commissioner (Appeals), Hyderabad, has held the product non-excisable. We also heard Shri H.C. Verma, learned Departmental Representative, who submitted that the product is covered by Heading No. 28.03 of the Central Excise Tariff.
3. After considering the submissions of both the sides, we are of the view that the Applicants have made out a prima facie case in their favour. Accordingly, we stay the recovery of entire amount of duty and penalty during the pendency of Appeal which is posted for regular hearing on 14-1-2005.