2015 (10) TMI 1260 - AT - Central Excise

Waiver of pre deposit - Penalty u/s 11AC - Held that - Commissioner while directing pre-deposit has recorded reasons. At this stage keeping in view the recent trend in disposing stay application, it would be appropriate to direct the Applicant to deposit further amount of ₹ 2.10 Lakhs, taking into consideration that they have already deposited an amount of ₹ 2.00 Lakhs during the course of adjudication proceeding. In the result, the applicant is directed to deposit ₹ 2.10 Lakhs within a period of eight weeks from the communication of this order and report compliance on 24.9.2015. On deposit of the said amount, pre-deposit of balance dues adjudged would be waived and its recovery stayed during the pendency of the appeal. Failure to deposit the said amount would result in dismissal of the Appeal without further notice. - Partial stay granted.

Summary

Issues involved: Application for waiver of pre-deposit of duty and penalty under Central Excise Rules, 1944.

Analysis:
1. The applicant sought waiver of pre-deposit of duty and penalty amounting to Rs. 41.00 Lakhs imposed under Rule 18 of the Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010, read with Section 11AC of the Central Excise Rules, 1944.

2. The Revenue's representative highlighted that the appellant failed to comply with the pre-deposit directive issued by the Commissioner(Appeals) during the Stay Application process. As a consequence, the Appeal was dismissed due to non-compliance. It was mentioned that an amount of Rs. 4.00 Lakhs had been deposited during the adjudication proceedings.

3. The Tribunal observed that the Commissioner had provided reasons for the pre-deposit directive. Considering the prevailing practice in handling stay applications, the Tribunal directed the applicant to deposit an additional sum of Rs. 2.10 Lakhs. This amount was determined taking into account the earlier deposit of Rs. 2.00 Lakhs. The applicant was instructed to deposit the specified amount within eight weeks from the order's communication and report compliance by a specified date. Upon this deposit, the pre-deposit of the remaining dues would be waived, and recovery would be stayed during the appeal's pendency. Failure to comply would lead to the Appeal's dismissal without further notice.

This judgment emphasizes the importance of complying with pre-deposit directives in appeals related to duty and penalty under the Central Excise Rules, 1944. It also showcases the Tribunal's approach to balancing the interests of the parties involved while ensuring procedural adherence and timely compliance with financial obligations.