2003 (1) TMI 503 - AT - Central Excise

Summary

Issues:
1. Waiver of pre-deposit of duty amount confirmed against the appellants.
2. Claim for total waiver of pre-deposit due to the company being declared a sick unit.
3. Financial losses suffered by the appellants and request for complete waiver.

Analysis:

Issue 1: Waiver of pre-deposit of duty amount
The appellants sought a waiver of pre-deposit of duty amount of Rs. 1,98,17,777 confirmed against them for the period 1-9-1997 to 29-2-2000. They were engaged in manufacturing non-alloy steel ingots and billets, opting for monthly duty payment. The duty liability was determined at Rs. 15,00,000 initially, later revised to 19200 MTs. The Commissioner's order regarding duty arrears was not challenged, making it final. The Tribunal found no grounds for waiver, directing full pre-deposit within 3 months.

Issue 2: Claim for total waiver due to being a sick unit
The appellants claimed total waiver citing their company's closure and application to BIFR as a sick unit. However, no evidence of BIFR declaring them a sick unit was provided, undermining their claim. The Tribunal noted the absence of official declaration and rejected the plea for total waiver, emphasizing the mandatory compliance with Section 35F of the Act.

Issue 3: Financial losses and request for complete waiver
The appellants presented a balance sheet for 2000-2001 showing heavy losses but failed to provide an updated sheet for 2002-2003. The Tribunal questioned the authenticity of the balance sheet and emphasized the government's need for revenue to fund public welfare schemes. Financial losses alone were deemed insufficient grounds for complete waiver, as the duty confirmed related to goods sold in the market during the period in question.

In conclusion, the Tribunal denied the appellants' request for waiver, directing them to pre-deposit the outstanding duty amount within three months. Failure to comply would result in potential dismissal of the appeal under Section 35F of the Act.