2003 (8) TMI 373 - AT - Central Excise

Summary

Issues:
Prayer to dispense with pre-deposit of duty and penalty in a stay application.

Analysis:
The stay application sought to waive the pre-deposit condition of duty amounting to Rs. 83,72,919 and a personal penalty of Rs. 20 lakhs. The appellant's representative argued that Modvat credit was disallowed based on the condition of not availing benefits under specific Customs duty notifications. The Tribunal had previously remanded the matter to the Commissioner to examine the documentary evidence supporting the appellant's claims, which they failed to produce during the de novo adjudication. The appellant contended that Customs authorities could deny notification benefits but not reverse Modvat credits, citing Tribunal decisions. The Revenue objected, stating that new grounds could not be introduced post-remand, and the appellant failed to meet the remand order's requirements.

The Tribunal noted that the appellant did not provide evidence as directed in the remand order and raised a different plea instead. The issue of whether new grounds could be raised post-remand was considered debatable, but the appellant did not establish a prima facie case due to non-compliance. Financial hardship claims were also reviewed, with the appellant's financial status indicating the ability to deposit a partial duty amount. Considering all factors, the Tribunal directed the appellant to deposit Rs. 30 lakhs within two months and dispensed with the balance duty and penalty deposit conditions, staying the recovery pending compliance.