2012 (8) TMI 1030 - AT - Central Excise

Summary

Issues involved:
The issues involved in the judgment are duty demand confirmation, penalty imposition, waiver of pre-deposit condition, misleading the Tribunal regarding deposit of duty demand, and compliance with Section 35F of the Central Excise Act.

Duty Demand Confirmation and Penalty Imposition:
The appeal was dismissed against the impugned order dated 24-1-2011, confirming duty demand of Rs. 3,06,65,035/- against the appellant along with interest and an equal penalty. The appellant falsely contended that the duty confirmed had already been recovered, leading to a stay application seeking waiver of pre-deposit of interest and penalty for the appeal.

Waiver of Pre-Deposit Condition:
The Tribunal initially waived the pre-deposit condition of interest and penalty based on the appellant's false contention. However, it was later revealed that the appellant had not deposited the entire amount of duty demanded, prompting the Department to seek rectification of the stay order.

Misleading the Tribunal Regarding Deposit of Duty Demand:
The appellant, despite claims, had only deposited Rs. 58,28,711/- against the duty demand of Rs. 3,06,65,035/- confirmed in the impugned order. The appellant was found to have continuously misled the Tribunal regarding the deposit of the duty demand, leading to the recall of the stay order and dismissal of the stay application.

Compliance with Section 35F of the Central Excise Act:
Section 35F of the Central Excise Act mandates the deposit of duty demanded pending appeal unless dispensed with by the Tribunal. The appellant, by failing to apply for a stay of the pre-deposit condition and attempting to mislead the Tribunal, was deemed to have not complied with the provisions of Section 35F. Consequently, the appeal was rejected as the appellant had not met the required conditions for hearing the appeal.

This judgment highlights the importance of compliance with legal provisions and the consequences of misleading the Tribunal in matters related to duty demand confirmation, penalty imposition, and pre-deposit conditions under the Central Excise Act.