2013 (11) TMI 1195 - AT - Central Excise

Intention of duty evasion - Waiver of Pre-deposit Held that - Prima facie, the plea of innocence was rebutted by the Revenue by presumption of guilt - Manager did not speak anything as to where from 130 boras of gutkha was received - After a long time he stated the ownership of the goods - In between quite a long time was lost. Revenue got the advantage of the passage of time to have presumption of guilt - as an interim measure to protect the interest of Revenue, the appellant is directed to deposit Rs. 10 lakhs as pre-deposit upon such submission rest of the duty to be stayed till the disposal Partial stay granted.

Summary

Issues:
1. Penalty imposition based on Rule 26 analysis
2. Alleged duty evasion and transportation of unaccounted gutka
3. Presumption of guilt and rebuttal of innocence
4. Interim measure for pre-deposit waiver

Analysis:
1. The appellant's consultant argued against the penalty of Rs. 20 lakhs, citing Rule 26 analysis. He highlighted that the duty element on the assessable value was low, making the proposed penalty unreasonable. He emphasized that the appellant was not aware of the duty evasion intentions of another party involved in the case. The consultant contended that the statements recorded did not implicate the appellant in the offense.

2. The Departmental Representative countered the consultant's arguments by referring to Para 28 of the adjudication order, which detailed the modus operandi used for transporting unaccounted gutka without proper records. This indicated a systematic approach to circumventing regulations.

3. The Tribunal noted a presumption of guilt against the appellant due to the rebuttal of innocence by the Revenue. The delay in providing information by the Manager of the appellant raised suspicions. The Revenue took advantage of this delay to strengthen the presumption of guilt, especially regarding the ownership of the transported goods.

4. Considering the duty evasion and quantum determined in the adjudication order, the Tribunal found it impractical to grant a full waiver of the pre-deposit amount. As an interim measure to protect the Revenue's interest, the appellant was directed to deposit Rs. 10 lakhs within a specified timeframe. Compliance with this directive would lead to a waiver of the remaining pre-deposit amount during the appeal's pendency.

Additionally, the Tribunal clarified that while multiple stay applications were submitted, the order specifically addressed the present stay application, with separate orders reserved for the other applications.