2014 (1) TMI 1722 - AT - Central Excise

Waiver of predeposit of duty along with interest and penalty - Held that - Commissioner (Appeals) has given a detailed finding and it appears that personal hearing was granted and nobody appeared on behalf the applicant. The issue of cross examination could be examined only at the time of appeal hearing. In view of that, the applicant is directed to make predeposit of an amount of ₹ 1,00,000/- (Rupees One lakh) within eight weeks. Upon such deposit, predeposit of balance amount of duty alongwith interest and penalty is waived and its recovery thereof stayed till the disposal of the appeal. The compliance is to be reported on 14.03.2014.

Summary

Issues involved: Application for waiver of predeposit of duty, proper opportunity of hearing, cross examination during adjudication

The judgment concerns an application for waiver of predeposit of duty amounting to Rs. 4,45,230 along with interest and penalty for a specific period. The applicant, engaged in manufacturing HDPE Woven Fabrics and Sacks, faced a demand of duty based on evidence recovered during a visit to their factory. The applicant contended that the adjudicating authority did not provide a proper hearing and did not allow cross-examination of all relevant persons. The applicant's representative argued that the authority did not grant a fair opportunity of hearing. On the other hand, the Assistant Commissioner stated that an employee admitted to clandestine removal of goods in his statement to Central Excise Officers.

Upon reviewing the submissions from both sides and examining the records, the Judicial Member found that the Commissioner (Appeals) had issued a detailed finding indicating that a personal hearing was granted, even though no one appeared on behalf of the applicant. The issue of cross-examination was deemed relevant for consideration during the appeal hearing. Consequently, the applicant was directed to make a predeposit of Rs. 1,00,000 within eight weeks. Following this deposit, the predeposit of the remaining duty amount, along with interest and penalty, was waived, and the recovery thereof was stayed until the appeal's disposal. The applicant was required to report compliance by a specified date.

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