2003 (9) TMI 479 - AT - Central Excise

Summary

Issues:
Waiver pre-deposit of duty and penalty under Section 11A of the Central Excise Act, 1944 and Rule 173Q of the Central Excise Rules, 1944.

Analysis:
The proceedings were initiated against the appellants for contravening Rules 13, 52A, 173O, and 185 of the Central Excise Rules by exporting Straight Run Naptha (SRN) without following proper procedures. The appellants sought permission for provisional export due to a surplus in domestic demand, but exported without approval, supervision, or adherence to export rules. The appellants claimed an emergency situation, citing a lack of storing facility, but had prior experience handling similar situations. They exported goods before receiving formal permission, loaded goods without following procedures, and failed to submit required forms. The tribunal noted the absence of a rule for 'provisional AR-4A' and rejected the appellants' reliance on a previous case law due to non-compliance with necessary procedures in this case.

The tribunal acknowledged the appellants' status as a Public Sector Unit and their contribution to foreign exchange earnings. Despite recognizing an arguable case, the tribunal directed a pre-deposit of Rs. 1,00,00,000 out of the total duty demand of Rs. 4,48,54,764.63 and a penalty of Rs. 40,00,000. The remaining duty and penalty were waived, with recovery stayed during the appeal's pendency. Failure to make the pre-deposit within three months would lead to potential rejection of the appeal under Section 35F of the Central Excise Act, 1944. Both parties were given the option to request an early appeal hearing due to the substantial amount involved.