2000 (11) TMI 156 - HC - Central Excise

Summary

Issues:
Challenge against the order of the Customs, Excise and Gold (Control) Appellate Tribunal regarding waiver of pre-deposit of duty and penalty under the Central Excise Act, 1944.

Analysis:
The judgment pertains to a petition challenging an order passed by the Customs, Excise and Gold (Control) Appellate Tribunal regarding the waiver of pre-deposit of duty amounting to Rs. 30,32,433/- and penalty under the Central Excise Act, 1944. The background leading to the levy involved a surprise visit by Central Excise officers to the petitioner's unit, where discrepancies were noted. Allegations included availing inadmissible credit, passing on duty without actual supply of goods, and contravention of various Central Excise Rules. The Tribunal, after considering the materials, concluded that the petitioner failed to establish a prima facie case for waiver of pre-deposit and did not demonstrate any financial hardship. Consequently, the petitioner was directed to deposit a sum of Rs. 15 lakhs by a specified date.

The petitioner contended that the Department's stand was contradictory, emphasizing that without manufacturing, the question of passing on duty does not arise. It was argued that imposing a substantial liability based on a single inspection and the statement of a chowkidar was unjustified. On the other hand, the respondent highlighted the petitioner's modus operandi, misuse of Modvat terms, and fraudulent availment of credit. The High Court, after considering the arguments, upheld the Tribunal's decision, noting that the Tribunal adequately addressed the conflicting positions and correctly found no prima facie case for waiving the pre-deposit requirement. The Court emphasized that at the stage of considering a stay application, a detailed analysis was not necessary, and the focus should be on establishing a prima facie case. Additionally, the Court found no credible evidence supporting the claim of undue financial hardship. The Court, therefore, declined to interfere with the quantum fixed by the Tribunal but extended the period for depositing the amount until the end of January, 2000.

In conclusion, the High Court disposed of the petition in accordance with the above analysis, affirming the Tribunal's decision regarding the waiver of pre-deposit of duty and penalty under the Central Excise Act, 1944.