2007 (12) TMI 404 - AT - Central Excise

Summary

Issues:
1. Stay applications seeking waiver of pre-deposit of confirmed amounts in Orders-in-Original.
2. Consideration of company's closure and assets under liquidation.
3. Arguments on evidence supporting clandestine removal charges and demand confirmation.
4. Confiscation of assets and penalty imposition on deceased director.
5. Granting waiver of pre-deposit, stay on recovery, and scheduling of final hearing.

Analysis:
1. The appellants filed stay applications seeking waiver of pre-deposit of amounts confirmed in Orders-in-Original. The duty amounts and penalties were detailed for each order, spanning different periods from 1981 to 1985. The High Court of Kerala had remanded the matter for re-consideration of the stay applications.

2. The appellants' Chartered Accountant highlighted the company's liquidation status and cessation of operations for 20 years. All company assets were taken over by the Official Receiver, with no funds available for pre-deposit. The Revenue had not initiated recovery proceedings due to the High Court's order, leading to a request for waiver and listing of appeals for final hearing.

3. The Respondent's Detailed Representative submitted parawise comments and relied on various judgments, emphasizing substantial evidence supporting clandestine removal charges and demand confirmation. Confiscation of assets like land, building, plant, and machinery had occurred, with outstanding Redemption fine unpaid.

4. The Chartered Accountant argued that due to asset confiscation, pre-deposit was unnecessary. Mention was made of a deceased Director, proposing a waiver of the meager penalty imposed on him. The company's closure and asset status were reiterated to support the waiver request.

5. After careful consideration, the Tribunal acknowledged the company's long closure and asset takeover by the Official Receiver, making pre-deposit impractical. The stay applications were allowed, granting waiver and staying recovery until appeal disposal. The matters, being old, were scheduled for final hearing on a specified date, with both sides required to prepare for arguments without adjournments. The Tribunal directed the listing of these matters as the sole item for the day, emphasizing a prompt and conclusive hearing process.