2013 (8) TMI 121 - HC - Central Excise

Waiver of pre-deposit Stay application -Issue involved is regarding demand of duty on the appellant on the ground of under valuation of finished goods Frit and clandestine removal thereof. The demand is also on the ground that the appellant exceeded the SSI exemption limit of Rs.4 crores, subject to addition of confirmation of demand in respect of under-valuation and clandestine removal Held that -Adjudicating authority has relief upon only the consumption of gas used for fire and kiln - Statement of one of the appellant s manufacture, to whom the appellant had supplied the raw material Frit , was recorded and on the basis of such statement, the lower authority has come to the conclusion that there was gross clandestine removal of the goods - Issue is contentious one and needs to be gone into detail, which can be done as at the time of final disposal - The Petitioner is directed to deposit Rs.25 lakhs with the department within a period of 12 weeks Decided in favor of Assessee.

Summary

Issues: Discrepancy in pre-deposit amounts between M/s. Supreme Glazes Private Ltd. and the present petitioner.

Analysis:
The judgment delivered by the High Court of Gujarat pertained to a case involving the discrepancy in pre-deposit amounts demanded by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) from M/s. Supreme Glazes Private Ltd. and the present petitioner. In the case of M/s. Supreme Glazes Private Ltd., the Tribunal had directed a pre-deposit of Rs. 25 lakhs and Rs. 30 lakhs, whereas the present petitioner was ordered to deposit Rs. 75 lakhs and Rs. 2 Crores as pre-deposit. The Tribunal had observed that the issue involved under-valuation of finished goods 'Frit' and clandestine removal, along with exceeding the SSI exemption limit of Rs. 4 crores. The Tribunal had considered detailed reasons provided by the adjudicating authority and directed the appellant to make a further pre-deposit of Rs. 30 lakhs. The High Court noted that the amount of duty liability demanded from M/s. Supreme Glazes Private Ltd. was about 8% of the total duty, while the present petitioner was asked to deposit 25% of the total duty liability.

The High Court, after hearing the arguments from both parties, concluded that since the dispute involved and the duty amount were the same in both cases, the discrepancy in pre-deposit amounts was unjustified. Therefore, the Court directed the present petitioner to deposit Rs. 25 lakhs with the department within 12 weeks, modifying the Tribunal's order accordingly. The petition was disposed of, and the notice was discharged. The judgment highlighted the importance of consistency in pre-deposit amounts demanded from different parties facing similar issues to ensure fairness and equality in legal proceedings.