1995 (11) TMI 157 - AT - Central Excise

Summary

Issues:
1. Requirement of deposits for hearing the applicant's appeals on merits.
2. Confiscation of plant and machinery of M/s. Nova Dyestuff I. P. Ltd.
3. Allegations against M/s. Manish Marketing and two manufacturing units.

Analysis:

1. The judgment outlines the requirement for the applicants to make specific deposits to proceed with the appeals on merits. The deposits are detailed for each applicant, including duty and penalty amounts. Notably, M/s. Nova Dyestuff I. P. Ltd. and M/s. Blue Chips Chemicals Ltd. are required to make significant deposits, whereas M/s. Manish Marketing is exempt from duty but has a penalty to be deposited.

2. The plant and machinery of M/s. Nova Dyestuff I. P. Ltd. were ordered for confiscation but allowed redemption upon payment of a fine. The order specified the fine amount for each case, enabling redemption of the confiscated items.

3. The contentions raised by the parties are thoroughly discussed in the judgment. The advocate for the applicants highlighted discrepancies in the allegations against M/s. Manish Marketing and the two manufacturing units. The advocate argued that the stock position at M/s. Manish Marketing matched the register and duty payment documents, indicating duty-paid stock. The lack of discrepancies in the manufacturing units' stock further supported the applicants' position. Conversely, the respondent contended that some gate passes were old, and there was no evidence of mixing or label removal, justifying the adverse conclusion by the Collector.

4. After considering the arguments from both sides, the judgment analyzed the admitted factual position presented in the show cause notice. It was established that the stock positions aligned with the documents at M/s. Manish Marketing and the manufacturing units, indicating no discrepancies. Consequently, the balance of convenience favored the applicants. As a result, the applicants were directed to furnish a personal bond covering duty and penalties within a specified period. Failure to comply would lead to dismissal of the appeal. Upon furnishing the bond, a stay against recovery and waiver of pre-deposit amounts were granted, ensuring the non-disposal of confiscated machinery and uninterrupted production processes.