1998 (3) TMI 613 - AT - Central Excise

Summary

Issues:
Dispensing with pre-deposit of duty and penalty based on financial hardship and lack of evidence regarding receipt of goods.

Analysis:
The application sought dispensation of pre-deposit of duty amounting to Rs. 42,68,117/- and penalty of Rs. 35,00,000. The case involved allegations against M/s. Nova Udyog Ltd. for manufacturing items without paying duty and not recording goods received or cleared. The appellant's counsel argued that no concrete evidence proved the receipt of 4540.550 M.T. of billets by the applicants, emphasizing the lack of evidence and opportunity for cross-examination. Financial hardship was also pleaded, citing the company's financial status as of 31-3-1997.

The respondent opposed waiving the pre-deposit, stating that the large quantity of alleged goods transported could not be disbelieved. The respondent highlighted that cash deposits were made by recipients and transferred to Nova Udyog Ltd. Financially, the respondent argued that the applicants had substantial current assets in stock. The respondent also mentioned that some transporters were cross-examined previously, undermining the appellant's claim of lack of cross-examination opportunity.

The Tribunal considered the evidence of transporters and noted that some were cross-examined, affirming the delivery of goods to consignees. The Tribunal found sufficient grounds supporting the department's case. Regarding the lack of further hearing opportunity, the Tribunal noted that the earlier Counsel suggested the case be decided by the Collector, indicating no denial of natural justice. In terms of financial hardship, the Tribunal acknowledged the appellant's claim of high duty incidence leading to factory closure for three months and current assets exceeding one crore rupees. Consequently, the Tribunal directed the appellant to deposit Rs. 15,00,000/- by a specified date.

Non-compliance with the Tribunal's order would result in the dismissal of the appeal without further notice. The stay petition was disposed of with the specified deposit conditions and a warning of dismissal for non-compliance.