2015 (11) TMI 361 - AT - Central Excise

Waiver of pre deposit - unregistered dealer - the applicant is a broker and introduced the parties with each other. He is neither registered dealer nor authorized dealer of Prakash Industries Ltd. - parallel invoices - Held that - As per facts & circumstances of the case, Pre deposit is waived in some case and in some case it is directed to deposit the same.

Issues:
1. Waiver of pre-deposit of penalties under Rule 26 of the Central Excise Rules, 2002 for various applicants.
2. Imposition of penalty on a broker for trading goods.
3. Imposition of penalty on employees working under the directions of a director.
4. Imposition of penalty on a whole-time director involved in duty evasion.
5. Waiver of pre-deposit for an applicant receiving goods on parallel invoices.
6. Waiver of pre-deposit of interest and penalty for a company.

1. Waiver of Pre-deposit of Penalties:
The judgment addresses multiple applications seeking waiver of pre-deposit of penalties under Rule 26 of the Central Excise Rules, 2002. For applicants involved in arranging transportation, the Tribunal waives the pre-deposit of penalties as they were not aware of the goods' confiscation liability. Similarly, employees working under a director are granted complete waiver as the penalty is deemed not imposable. However, the whole-time director involved in duty evasion is directed to make a pre-deposit of a specified amount. For applicants dealing with goods sold by a particular company, the Tribunal waives the pre-deposit as their role was unclear, and no statements or summons were issued during the proceedings.

2. Penalty on Broker for Trading Goods:
In the case of a broker trading goods, the Tribunal notes that the applicant admitted to dealing with only four invoices valued at a specific amount. Consequently, a duty amount is calculated, and the applicant is directed to make a pre-deposit with the balance of the penalty waived during the appeal's pendency.

3. Penalty on Employees Working under Director's Directions:
Employees working under the directions of a director are considered not liable for penalty under Rule 26 of the Central Excise Rules, 2002. The Tribunal grants a complete waiver of penalties imposed on these employees during the appeal's pendency.

4. Penalty on Whole-Time Director for Duty Evasion:
The whole-time director of a company involved in duty evasion is directed to make a pre-deposit of a specified amount. Failure to appear for hearings or statements leads to the decision that the director did not make a case for a complete waiver of pre-deposit.

5. Waiver of Pre-deposit for Applicant Receiving Goods on Parallel Invoices:
For an applicant receiving goods on parallel invoices, the Tribunal finds no reason for imposing a penalty as the goods were dealt with in good faith, and duties were paid to the supplier. Consequently, the Tribunal waives the pre-deposit of the entire penalty during the appeal's pendency.

6. Waiver of Pre-deposit of Interest and Penalty for a Company:
The Tribunal waives the pre-deposit of interest and penalty for a company that has paid the entire disputed duty amount in compliance with the provisions of section 35F of the Central Excise Act, 1944. Recovery of interest and penalty remains stayed during the appeal's pendency for this company.

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