2013 (12) TMI 340 - AT - Central Excise

Penalty under Rule 26 of the Central Excise Rules, 2002 - Chakdo rickshaws cleared Waiver of pre-deposit Held that - The appellant is a proprietor of M/s. Raj Auto Industries and has accepted in his statement that they were doing some work for M/s. Rajshakti Automobile Works in assembling chakdo rickshaws - the issue involved in this case as regards the penalty imposed on the appellant needs to be gone into detail as to the evidences which are laid by the appellant in his defences - the appellant has not made out a case for complete waiver of the pre-deposit of the amount - the appellant is directed to deposit an amount of Rs.20,000 as pre-deposit Upon such submission rest of the duty to be stayed till the disposal partial stay granted.

Summary

Issues: Penalty under Rule 26 of Central Excise Rules, 2002 for assembling and clearing chakdo rickshaws on behalf of another entity.

The judgment by the Appellate Tribunal CESTAT AHMEDABAD, delivered by Mr. M.V. Ravindran, addressed the issue of penalty imposed on the appellant under Rule 26 of the Central Excise Rules, 2002. The appellant, a proprietor of M/s. Raj Auto Industries, accepted in his statement that they were involved in assembling chakdo rickshaws for M/s. Rajshakti Automobile Works. The Tribunal noted the need to delve into the evidence presented by the appellant in defense of the penalty. It was observed that the appellant failed to establish a strong case for a complete waiver of the pre-deposit of the amounts involved. Consequently, the Tribunal directed the appellant to deposit Rs.20,000 within eight weeks and report compliance. The Deputy Registrar was tasked with verifying compliance and presenting the file for further orders. Upon satisfactory compliance, the application for waiver of the remaining amounts was allowed, and the recovery was stayed pending the appeal's disposal.

In this case, the issue revolved around the penalty imposed on the appellant for activities related to assembling and clearing chakdo rickshaws on behalf of another entity, M/s. Rajshakti Automobile Works. The Tribunal scrutinized the appellant's admission of involvement in assembling the rickshaws and the need to assess the evidence presented by the appellant to defend against the penalty. Despite the appellant's submission, the Tribunal concluded that a compelling case for a complete waiver of the pre-deposit of the amounts involved was not established. As a result, the Tribunal ordered the appellant to deposit Rs.20,000 within eight weeks and report compliance to the Deputy Registrar. The compliance verification process was crucial, as it would determine the subsequent actions regarding the waiver of the remaining amounts and the stay on recovery pending the appeal's final decision.

The judgment emphasized the importance of thoroughly examining the evidence and defenses presented by the appellant concerning the penalty under Rule 26 of the Central Excise Rules, 2002. The Tribunal's decision to direct the appellant to make a specific deposit within a specified timeframe highlighted the seriousness of the matter and the need for compliance. The role of the Deputy Registrar in verifying compliance and reporting back to the Tribunal showcased the procedural diligence followed in such cases. The conditional allowance of the waiver for the remaining amounts and the stay on recovery underscored the Tribunal's consideration of the appellant's circumstances while ensuring adherence to legal requirements and due process.