2002 (8) TMI 762 - AT - Central Excise

Summary

Issues:
Prayer for dispensing with predeposit of duty amount and penalty.

Analysis:
The appellants entered into a contract with another company for the supply of plywood. Central Excise Officers searched the appellants' office and seized records, leading to a show-cause notice for under-valuation of goods and cash realizations. The appellants argued that the case was based on records of their Chartered Accountant, who was not related to their business, and that the order exceeded the notice's scope. They also cited financial difficulties. The Revenue contended that evidence showed under-valuation, including cash register data and the Chartered Accountant's knowledge. The Tribunal found the Chartered Accountant's notes systematic and relevant, indicating no strong case on merits. Despite financial hardship claims, the appellants were directed to deposit Rs.10 lakh within eight weeks, with the remaining amount waived pending appeal. Compliance and final disposal were set for a later date.

This judgment addressed the issue of dispensing with predeposit of duty and penalty. The Tribunal considered evidence from a search operation, the Chartered Accountant's notes, and financial hardship claims. Despite the appellants' arguments, the Tribunal found the Revenue's case supported by systematic notes indicating under-valuation. The appellants' financial difficulties were noted, but without a recent balance sheet, the Tribunal directed a partial deposit of Rs.10 lakh within eight weeks, waiving the remaining amount pending appeal. Compliance and final disposal were scheduled for a specific date.