1989 (9) TMI 239 - AT - Central Excise

Summary

Issues:
1. Stay application for deposit of duty and penalty amount.
2. Request for modification of payment schedule due to financial hardship.
3. Company's financial difficulties and inability to raise additional loans.
4. Request for waiver of balance amount due to company's relief undertaking status.
5. Legal arguments regarding undue hardship, financial conditions, and res judicata.
6. Opposition to the application by the Departmental Representative.
7. Tribunal's analysis of the company's financial position and decision on the application.
8. Modification of earlier orders and requirement for a guarantee bond.

Analysis:
1. The appellant filed a stay application due to a demand for duty and penalty. The Tribunal directed the appellant to deposit specific amounts in installments to avoid recovery proceedings.

2. The appellant sought modification of the payment schedule citing financial difficulties. The Tribunal allowed the appellant to pay the balance amount in monthly installments, considering the company's challenges.

3. The company faced financial constraints and was unable to raise additional loans. The Executive Director invested personal funds to sustain operations, highlighting the company's financial struggles.

4. The appellant requested a waiver of the remaining amount due to being declared a relief undertaking. The company's accumulated losses and operational challenges were presented to support the plea for relief.

5. Legal arguments were made, citing cases related to undue hardship, financial conditions, and res judicata. The appellant argued that the Tribunal could reconsider stay applications based on the financial position of the assessee.

6. The Departmental Representative opposed the application, emphasizing the necessity for the appellant to pay the admitted duty amount.

7. The Tribunal acknowledged the company's deteriorating financial position and the challenges faced due to power supply issues. Considering the circumstances, the Tribunal modified the earlier order to alleviate financial burden.

8. The Tribunal modified the previous orders and directed the Director to file an undertaking regarding the immovable property and machinery value, ensuring compliance with the modified payment schedule within a specified timeframe.