2013 (7) TMI 596 - AT - Central Excise

Pre-deposit of the entire demanded amount Held that - Revenue recorded statement of Managing Director Shri Baleshwar Nath of the appellant. Shri Anil Anil Kumar Chaudhary, owner of the above vehicle brought out inextricable link between clandestine removal of cigarettes made by the Appellant and movement of the same by the offending vehicle while resulted in seizure at Varanasi Excise Department - Shri Anil Kumar Chaudhary, vehicle owner brought Shri Adesh Kumar Srivastava, proprietor of M/s. S.A.S. Tobacco Pvt. Trading Co. to the route of investigation who was buyer of the clandestinely removed goods and a vital link of evidence was brought out by him - Evidence came from of driver of the offending vehicle remaining un-rebutted by any of the persons above - Finding interest of Revenue was prejudiced, pre-deposit of entire demand which included duty element as well as penalty was ordered. Stay Order - Direction issued to make deposit of entire demand during pendency of appeal within stipulated time. But only duty element was deposited Held that - Appellant failed to comply with the stay order, for which its appeal is dismissed by this order Decided against the Assessee.

Summary

Issues: Non-compliance with stay order, evasion of excise duty, dismissal of appeal due to failure to deposit entire demand.

Issue 1: Non-compliance with stay order
The judgment highlights the non-compliance with a stay order issued to the appellant, directing the deposit of the entire demand during the pendency of the appeal. Despite the direction, only a portion of the duty element was deposited, leading to a lack of compliance with the stay order. The lack of adherence to the stay order is cited as the primary reason for the dismissal of the appeal.

Issue 2: Evasion of excise duty
The case involved a significant evasion of excise duty by a company, where 25 CFC of Max brand cigarettes were clandestinely cleared on a specific date and transported using a particular vehicle. The interception of the vehicle by the Commercial Tax department revealed the evasion, leading to the seizure of the offending goods. Statements from key individuals, including the Managing Director of the appellant company and the owner of the vehicle, provided crucial evidence linking the clandestine removal of goods to the subsequent movement and seizure. The evidence presented a clear picture of the evasion scheme and the involvement of multiple parties in the illicit activity.

Issue 3: Dismissal of appeal due to failure to deposit entire demand
Considering the evasion of excise duty and the prejudiced interest of Revenue, the Tribunal had ordered the pre-deposit of the entire demand, encompassing both the duty element and penalty. However, the appellant failed to comply with this order, leading to the dismissal of the appeal. The failure to adhere to the pre-deposit requirement was viewed as a serious violation, resulting in the unfavorable outcome for the appellant.

In conclusion, the judgment emphasizes the importance of complying with court orders, particularly regarding pre-deposit requirements in legal proceedings. The detailed analysis of the evasion scheme and the involvement of various individuals underscores the gravity of the case and the significance of upholding legal obligations in matters concerning excise duty evasion.