2006 (8) TMI 364 - AT - Central Excise

Summary

Issues:
Delay in filing appeals due to torrential rains in Mumbai, waiver of pre-deposit of duty and penalty for three applicants, determination of eligibility to SSI exemption, confirmation of duty demand against multiple units, imposition of penalty on the real unit.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Mumbai addressed the issue of delay in filing appeals due to torrential rains in Mumbai. The Tribunal pre-allowed the applications for condonation of delay of three days, being satisfied with the explanation provided by the appellant regarding the inability to file the appeals on specific dates due to adverse weather conditions.

Regarding the waiver of pre-deposit of duty and penalty, the Tribunal considered the submissions from both sides. The case involved multiple applicants, with the Revenue contending that certain units were dummy units while one was the real unit. Despite the Revenue's argument, the Commissioner had confirmed duty demand against all three applicants and imposed penalties. Notably, the Commissioner's actions indicated a prima facie acceptance that the alleged dummy units were existing units, as duty demand cannot be upheld against dummy units.

The Tribunal further observed that the Commissioner had granted SSI exemption to one of the alleged dummy units during a specific period. Based on these findings, the Tribunal held that a prima facie case for pre-deposit had been established. Consequently, the Tribunal dispensed with the pre-deposit of duty and penalty, staying the recovery pending the appeals. This decision was pronounced in court by the Vice-President of the Tribunal, Ms. Jyoti Balasundaram, indicating a thorough analysis of the facts and legal aspects involved in the case.