2004 (9) TMI 479 - AT - Central Excise

Summary

Issues:
1. Waiver of pre-deposit of duty and penalty.
2. Allegation of suppression of price of goods.
3. Evidence and investigation regarding the demand confirmation.

Analysis:
1. The Applicants sought a waiver of pre-deposit of duty amounting to Rs. 4.65 crores and an equivalent penalty, along with personal penalties. The demand was confirmed due to the alleged suppression of the price of goods cleared by the Applicants. The contention put forth was that while there was a confirmed demand for the period before November 2002, the subsequent demand was based solely on presumption without concrete evidence linking the Applicants to any wrongdoing. The Adjudicating Authority's findings were cited, emphasizing the lack of evidence beyond November 2002, as no further investigation was conducted into the matter.

2. Upon examining the facts and circumstances, the Tribunal observed that the Applicants appeared to have a strong case in their favor. The Adjudication Order relied on evidence from a previous order without conducting any fresh investigation for the present demand period. Consequently, the Tribunal decided to waive the pre-deposit of duty and penalty, staying the recovery process during the appeal's pendency. The case was adjourned for further arguments to be heard on 14th December 2004.

This judgment highlights the importance of substantive evidence and investigation in confirming demands related to alleged violations. The Tribunal's decision to grant the waiver and stay the recovery process underscores the need for a thorough examination of facts and a strong legal basis for imposing financial obligations on the parties involved.