2013 (11) TMI 1089 - AT - Central Excise

Clubbing of units cleared Waiver of Pre-deposit Held that - Detailed investigation has been done by the Revenue in bringing out the fact that all the units are controlled by M/s Aircomp Enterprise - There is a prima facie flow of monetary considerations and mutuality of interest as brought out by investigation - The facts brought out by the investigation have been duly analysed and discussed by the adjudicating authority - Prima facie the appellants have not made out a case of complete waiver appellant is required to submit part as pre-deposit upon such submission rest of the duty to be submitted till the disposal Partial stay granted.

Summary

Issues: Stay applications for recovery of duties and penalties confirmed under Order-in-Original, clubbing of clearances of multiple units, prima facie case of waiver, pre-deposit amount for stay.

Stay Applications for Recovery of Duties and Penalties:
The stay applications were filed to prevent the recovery of duties and penalties confirmed under Order-in-Original No.38 & 39/COMMISSIONER /2013, passed by the Commissioner of Central Excise & Customs, Rajkot. The orders were related to two Show Cause Notices proposing confiscation of seized goods and clubbing of clearances of multiple units run by the appellants. The advocate for the appellants argued against clubbing the clearances, stating that M/s Aircomp Enterprise was not involved in manufacturing activities, and all units were separate legal entities. The Department, represented by the Additional Commissioner, supported the reasoning of the adjudicating authority as per specific paragraphs of the impugned Order-in-Original.

Clubbing of Clearances of Multiple Units:
Upon detailed investigation by the Revenue, it was found that all units were controlled by M/s Aircomp Enterprise, showing a flow of monetary considerations and mutuality of interest. The investigation revealed significant facts supporting the clubbing of clearances, as discussed in the adjudication order. The appellants failed to establish a prima facie case for complete waiver, and it was decided that detailed arguments regarding the stay would be addressed during the final hearing of the case.

Prima Facie Case of Waiver and Pre-Deposit Amount for Stay:
Considering the findings of the investigation and arguments presented, the Tribunal directed M/s Aircomp Enterprise to make a pre-deposit of Rs.20 lakhs within eight weeks to secure a stay on the remaining duty, interest, and penalties imposed under the Order-in-Original. The compliance deadline was set, and failure to meet the pre-deposit requirement would result in further action by the Tribunal. The decision highlighted the need for detailed examination of the appellants' arguments during the final hearing, indicating that a prima facie case for complete waiver was not established based on the current information.

This judgment by the Appellate Tribunal CESTAT Ahmedabad addressed the stay applications concerning the recovery of duties and penalties, the clubbing of clearances of multiple units, the requirement for a pre-deposit amount for securing a stay, and the lack of a prima facie case for complete waiver based on the investigation findings and arguments presented by both parties.