2015 (10) TMI 1245 - AT - Central Excise

Waiver of pre deposit - removal of MS ingots clandestinely without payment of duty - Held that - Considering that the applicant had already deposited ₹ 10.00 Lakhs and offers to deposit further an amount of ₹ 10.00 Lakhs, which in our opinion is sufficient to hear the appeals. Consequently the Applicant M/s. Atlanta Commodities is directed to deposit ₹ 10.00 Lakhs within a period of eight weeks from today and report compliance on 03.09.2015. On deposit of the said amount, pre-deposit of balance dues adjudged against M/s. Atlanta Commodities Pvt.Ltd. and the entire penalty against Shri Bharat Bhushan Sachdeva would stand waived and its recovery stayed during pendency of the appeal. It is made clear that failure to deposit the amount by M/s.Atlanta Commodities would result in dismissal of both the appeals without further notice. - Partial stay granted.

Summary

Issues:
Waiver of pre-deposit of duty and penalty amounting to Rs. 2.55 crores, personal penalty of Rs. 20.00 lakhs imposed on an individual, allegations of clandestine removal of MS ingots without duty payment, deposit of Rs. 10.00 lakhs during adjudication, closure of factory affecting income, offer to deposit additional Rs. 10.00 lakhs, direction for further deposit within eight weeks, consequences of failure to comply.

The judgment concerns applications seeking waiver of pre-deposit of duty and penalty by M/s. Atlanta Commodities and a personal penalty imposed on an individual for alleged clandestine removal of MS ingots without duty payment from March 2006 to September 2007. The issue revolves around the evidence presented by both sides, crucial for the appeal's disposal. The appellant's representative highlighted the factory's closure for 2-3 years, resulting in minimal income, but offered to deposit Rs. 10.00 lakhs at this stage.

The Revenue's representative reiterated the Commissioner's findings during the proceedings. The tribunal noted that Rs. 10.00 lakhs had already been deposited and the appellant offered to deposit an additional Rs. 10.00 lakhs, which was deemed sufficient to proceed with the appeals. Consequently, M/s. Atlanta Commodities was directed to deposit Rs. 10.00 lakhs within eight weeks and report compliance by a specified date. Upon this deposit, the pre-deposit of the remaining dues against M/s. Atlanta Commodities and the entire penalty on the individual would be waived, with recovery stayed during the appeal's pendency. Failure to comply with the deposit directive would lead to the dismissal of both appeals without further notice.

The judgment was pronounced and dictated in open court by Dr. D.M. Misra, one of the presiding judges.