2014 (1) TMI 517 - AT - Central Excise

Goods cleared but no machinery to process - Waiver of Pre-deposit Held that - The appellant were clearing the goods to one of the firm despite having the knowledge that the M/s. Sana Textiles has no machinery to process the goods - there being an admission statement of the appellant as to the commissions and omissions the appellant had not been able to make put a prima facie case in their favour - the appellant is directed to deposit an amount of Rs.5 lakhs as pre-deposit upon such submission rest of the duty to be stayed till the disposal partial stay granted.

Summary

Issues involved: Stay petition adjournment, admission statement, penalty imposition, waiver of pre-deposit, compliance reporting

In this judgment by the Appellate Tribunal CESTAT AHMEDABAD, the issue of repeated adjournments in a stay petition was addressed. The matter had been adjourned multiple times due to the unavailability of the advocate. Despite the appellant seeking adjournments regularly since 26.09.12, the tribunal found no reason to grant further adjournments.

The next issue involved the admission statement of the appellant, who was a director in a company. The statement revealed that the company was clearing goods to a firm without the necessary machinery for processing. Based on this admission, the tribunal concluded that the appellant had not made a case for a complete waiver of the penalty imposed by the lower authorities.

Subsequently, the tribunal directed the appellant to deposit a specific amount within a specified period and report compliance. The compliance reporting was set for a future date, and subject to compliance, the application for the waiver of pre-deposit of the remaining amounts was allowed, with recovery stayed until the appeal's disposal.

Overall, the judgment dealt with issues related to adjournments, admission statements, penalty imposition, compliance reporting, and the waiver of pre-deposit, providing a detailed analysis and decision on each aspect.