2009 (2) TMI 519 - AT - Central Excise

Summary

Issues: Financial hardship plea, pre-deposit amount, balance sheet analysis, duty liability discharge, revenue interest, pre-deposit compliance

In this judgment by the Appellate Tribunal CESTAT, New Delhi, the appellant's counsel raised the issue of financial hardship, stating that they were unable to present the balance sheet earlier due to unavailability. The counsel mentioned that the appellant faced a loss of Rs. 39,74,000 for the financial year, making it challenging to meet the duty liability. They proposed a pre-deposit of Rs. 8,00,000 in two equal instalments within six weeks for lenient consideration. The Joint CDR agreed to this interim measure. The Tribunal examined the profit and loss account for the year 2007-2008 and noted the appellant's loss but highlighted the substantial sales figure of nearly Rs. 1,06,00,000. Despite the loss, the Tribunal found insufficient evidence to support the appellant's inability to discharge the duty. Recognizing the need to balance the interests of the Revenue, the Tribunal decided that a pre-deposit was necessary during the appeal's pendency. However, considering the appellant's proposal, they granted six weeks to make a pre-deposit of Rs. 8,00,000 in two instalments of Rs. 4,00,000 each, with a warning of consequences for non-compliance. If the appellant adheres to this directive by April 29, 2009, the balance demand realization will be stayed until the appeal's disposal.