2006 (8) TMI 396 - AT - Central Excise

Summary

Issues:
1. Confirmation of various duties against the appellant.
2. Imposition of personal penalties.
3. Non-compliance with export obligations leading to diversion of final products in the domestic market.
4. Admission of diversion of goods by the appellant.
5. Requirement of depositing 50% of confirmed demands for stay petition.
6. Consideration of the case of the other applicant for unconditional stay.

Analysis:

1. The Commissioner confirmed various duties against the appellant, including Customs Duty, Duty of Central Excise, Central Excise duty, and duty confirmed for Chindis cleared in the local market without payment. Personal penalties were also imposed on the appellant and another applicant under relevant sections of the Customs Act and Central Excise Rules.

2. The confirmed duties were based on findings that the appellant imported fabrics free of duty but failed to fulfill the export obligation, diverting final products in the local market. The duties were imposed accordingly, and penalties were levied in addition to the duty amounts.

3. The appellant admitted to diverting goods in statements recorded during the investigation. The Commissioner noted the wealth of details in the statements, finding them to be true and correct. The appellant failed to provide evidence showing the imported fabrics were used in exported final products, leading to the directive to deposit 50% of the confirmed duty demands within a specified period.

4. The appellant was directed to comply with the deposit requirement within 12 weeks, with the balance amount of duties and penalties waived subject to the initial deposit. The recovery of the waived amount was stayed during the appeal process.

5. The other applicant's case was considered separately, with the advocate arguing against the imposition of penalties. The Tribunal allowed the stay petition of the other applicant unconditionally, citing lack of clear allegations and procedural discrepancies in the order.

This judgment highlights the importance of complying with export obligations, providing evidence to support claims, and the procedural aspects of penalty imposition and stay petitions in customs and excise duty cases.