2003 (10) TMI 348 - AT - Central Excise

Summary

Issues: Application for waiver of pre-deposit of balance duty and penalty arising from Commissioner's order confirming duty on grounds of collusion.

Analysis:
1. The application for waiver of pre-deposit of the balance duty and penalty arises from the order of the Commissioner of Central Excise (A), Mumbai, confirming duty on the basis of collusion with merchant manufacturers for mis-declaration of assessable value of processed fabrics. A portion of the duty demand has already been paid during the investigation.

2. The Tribunal considered the charge of collusion, which was primarily based on the admission of the merchant manufacturers that the applicants had instructed them to file incorrect declarations. The argument against the availability of the extended period of limitation was deemed unacceptable at this stage, as the determination of collusion and the applicability of the extended period of limitation would be examined during the appeal hearing. The Tribunal found no strong prima facie case for total waiver, considering the facts and circumstances, and directed a further pre-deposit of Rs. 2 lakhs within eight weeks. Upon compliance, the balance duty and penalty pre-deposit would be waived, and recovery stayed pending the appeal.

3. The Tribunal set a compliance deadline for reporting on 16-12-2003, emphasizing that failure to adhere to the pre-deposit directive would lead to the vacation of stay and dismissal of the appeal without prior notice.