2004 (5) TMI 379 - AT - Central Excise

Summary

Issues: Application for waiver of pre-deposit of penalty under Section 35F of the Central Excise Act.

The judgment deals with an application for waiver of pre-deposit of penalty of Rs. 3,00,000 imposed on the appellants. The appeal filed by the appellants was dismissed by the Commissioner (Appeals) due to non-compliance with the provisions of Section 35F of the Central Excise Act, as the appellants failed to deposit Rs. 45,000 as per the stay order passed by the Commissioner (Appeals). The applicants relied on a Tribunal decision and a Madras High Court decision to argue that the penalty imposition was not sustainable. On the other hand, the Revenue contended that the appeal against the decision of the Single Judge was pending before the Division Bench and cited an Allahabad High Court decision to support the imposition of the penalty under the compounded scheme.

The Member (J) found that it was not a suitable case for a total waiver of the pre-deposit of penalty. The applicants were directed to pre-deposit Rs. 45,000 within four weeks. Upon the deposit of this amount, the remaining penalty was waived. The case was adjourned for compliance reporting on a specified date. The decision was based on a careful consideration of the facts and circumstances of the case, balancing the arguments presented by both sides and the legal precedents cited.