2014 (5) TMI 208 - AT - Central Excise

Duty demand - Clandestine removal of goods - Held that - it is case of clandestine removal of the goods and during the investigation, the records have been seized and on the basis of those documents, impugned demands have been confirmed. Therefore, prima facie we are of the view that it is a case of clandestine removal of the goods and matter cannot be examined in detail while dealing with the stay application. Therefore, considering the fact that the applicants have paid a sum of Rs. 15 lakhs during investigation out of total demand of Rs. 1,00,02,843/- we direct the applicants to make a further deposit of Rs. 30 Lakhs at this stage within a period of eight weeks. On such compliance being reported balance amount of duty, interest and penalties shall stand waived and recovery thereof stayed during pendency of the appeals - Conditional stay granted.

Summary

Issues:
1. Condonation of delay in filing the appeals.
2. Stay application in the case of clandestine removal of goods.

Condonation of Delay:
The case involved the applicant, M/s Ramanand Steel Ltd., seeking waiver of an impugned demand and penalty of Rs. 1 Crore, with another party seeking waiver of a pre-deposit of penalty of Rs. 25 lakhs. The delay in filing the appeals was explained by the Director of the appellant firm, who faced challenges in finding a suitable advocate in Mumbai, leading to a delay due to illness and financial constraints. The delay of 48 days was considered reasonable given the circumstances, and the applications for Condonation of delay were allowed.

Stay Application - Clandestine Removal of Goods:
The Tribunal found that the case involved clandestine removal of goods, supported by seized records during the investigation. Due to the nature of the case, a detailed examination was not deemed necessary for the stay application. The applicants had already paid Rs. 15 lakhs during the investigation out of a total demand of Rs. 1,00,02,843. Therefore, the Tribunal directed the applicants to make a further deposit of Rs. 30 lakhs within eight weeks. Upon compliance, the balance amount of duty, interest, and penalties would be waived, and the recovery stayed during the pendency of the appeals. The compliance deadline was set for 8.10.2012.

In conclusion, the Tribunal allowed the Condonation of delay in filing the appeals due to valid reasons provided by the applicants. For the stay application in the case of clandestine removal of goods, a further deposit was required, and upon compliance, the recovery of the balance amount would be stayed during the appeal process.