2002 (1) TMI 349 - AT - Central Excise

Summary

Issues:
1. Waiver of pre-deposit of penalties and stay of recovery pending appeals.

Analysis:
The judgment by the Appellate Tribunal CEGAT, New Delhi involved applications by the appellants seeking waiver of pre-deposit of penalties imposed on them and stay of recovery pending appeals. The Department had framed a case of clandestine removal of excisable goods against the Company and its Director, proposing penalties under various sections of the Central Excise Act and Rules. The duty on the goods had been paid before the show cause notice was issued. The adjudicating authority confirmed the duty demand against the Company and imposed penalties under different provisions. The appeals against this order were unsuccessful, leading to the appeals before the Tribunal and the current applications for waiver and stay.

The appellant's advocate argued for complete waiver of pre-deposit of penalties based on previous Tribunal views and legal grounds. He contended that the penalty imposed on the Director lacked supporting evidence and should also be waived. The Department's representative opposed the waiver, stating that the penalties were imposed under multiple provisions and the Director's admission in a statement justified the penalty under Rule 209A. The Tribunal considered the submissions, noting that the duty had been paid without protest and the penalty amount lacked a clear breakdown between different provisions. It found the penalty under Section 11AC not sustainable due to the timeline of events but acknowledged uncertainty regarding the penalty under Rule 173Q. Regarding the Director's penalty, the Tribunal highlighted his admission in a statement regarding the goods' clearance without duty payment, indicating awareness of the liability. While acknowledging a potential arguable case, the Tribunal directed the Director to deposit a specified amount within a set timeframe, granting waiver and stay to the Company for the penalty imposed on them.

In conclusion, the Tribunal's judgment addressed the waiver of pre-deposit of penalties and stay of recovery pending appeals for the Company and its Director. It analyzed the legal grounds, previous Tribunal views, and the evidence presented to determine the appropriate course of action for each party involved in the case.