2002 (1) TMI 355 - AT - Central Excise

Summary

Issues: Stay application for waiver of pre-deposit of duty and penalty amount.

The judgment pertains to a stay application seeking waiver of pre-deposit of duty and penalty amount. The appellants challenged an Order-in-Original confirming duty and penalty against them for clandestine manufacture and removal of M.S. Ingots during a specific period. The appellants argued that the electricity consumption experiment results were unreliable without corroboration and highlighted inconsistencies in the Commissioner's determination. They claimed a strong prima facie case for total waiver based on dropped proceedings against similar manufacturers. The Commissioner's order detailed the suppression of true production and dual record-keeping by the appellants. The Commissioner conducted experiments on electricity consumption, which the Tribunal found reasonable. Despite arguments from both sides, the Tribunal found insufficient grounds to disagree with the Commissioner's conclusions. The Tribunal directed the appellants to make a pre-deposit of Rs. 5 lakhs by a specified date, after which the balance duty and penalty amount pre-deposit requirement would be waived, and recovery stayed pending appeal disposal. Failure to comply would result in the appeal's dismissal under Section 35F of the Act.

In summary, the judgment addressed the appellants' stay application for waiving pre-deposit of duty and penalty amount related to clandestine manufacture of M.S. Ingots. The Tribunal considered arguments regarding the reliability of electricity consumption experiment results, dropped proceedings against similar manufacturers, and the Commissioner's findings of dual record-keeping and suppression of production. Ultimately, the Tribunal directed a partial pre-deposit by a specified date, failing which the appeal would be dismissed.