2013 (10) TMI 670 - AT - Central Excise

Clandestine Removal of Pan Masala - Recovery of Duty - Waiver of Pre-deposit - Held that - The Applicant had installed nine such machines clandestinely without intimating the department and used to manufacture the said products - demand notice was issued to them for recovery of duty on the goods manufactured by using this nine machines and cleared clandestinely without payment of duty - the evidences are in the form of admitted statements of the Managing Director, the employee of the company and also other corroborative evidences which establish the clandestine removal of goods without payment of duty - The Applicant has indulged in manufacture and clearance of Pan Masala without payment of duty from their premises during the relevant period - Keeping in view the interest of Revenue, the Applicant to deposit 50% of the duty confirmed excluding the amount already deposited upon such deposit rest of the duty to be waived till the disposal Partial stay granted.

Summary

Issues: Application for waiver of pre-deposit of duty and penalty under Section 11AC of the Central Excise Act, 1944.

Analysis:
1. The application sought waiver of pre-deposit of duty amounting to Rs.3.00 Crores and an equal penalty under Section 11AC of the Central Excise Act, 1944. The Appellant filed an Appeal along with a Stay Application in 2011, but failed to appear during subsequent hearings despite adjournments and notices issued by the Tribunal.

2. The Ld. A.R. for the Revenue argued that the Applicant was involved in manufacturing branded Pan Masala containing tobacco using clandestinely installed automatic packing machines. The department issued a demand notice for recovery of duty on goods manufactured and cleared without payment of duty. The adjudicating authority confirmed the demand based on collected evidences, including statements from the Managing Director and employees, establishing clandestine removal of goods.

3. The Tribunal, after hearing the Ld. A.R. for the Revenue and reviewing the records, found evidences against the Appellant supporting the claim. The Ld. Commissioner's order detailed the evidences, including statements and circumstances indicating clandestine manufacturing and clearance of Pan Masala without duty payment.

4. The evidences presented by the Ld. Commissioner included statements and observations supporting the conclusion of clandestine activities by the Appellant. The Tribunal directed the Appellant to deposit 50% of the confirmed duty within a specified period, failing which the Appeal would be dismissed without further notice. The balance dues would be waived upon compliance, with recovery stayed during the Appeal's pendency.

This detailed analysis of the judgment provides insights into the issues raised, arguments presented, evidences considered, and the final decision rendered by the Tribunal regarding the waiver of pre-deposit of duty and penalty under the Central Excise Act, 1944.