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1997 (6) TMI 209 - AT - Central Excise
Issues: Application for dispensation of pre-deposit of duty, penalty, and interest.
Analysis: The judgment pertains to an application for dispensation of pre-deposit of duty amounting to Rs. 1,23,18,177/- along with a penalty of Rs. 25 lacs and interest at 25% levied on the appellants. The appellants had sought an extension of time for fulfilling export obligations and modification of export product nomenclature and norms. Although an extension was granted until April 1997 and norms were modified, retrospective application was not allowed. The appellants failed to meet export obligations even during the extended period due to difficulties with norm amendments. The financial position of the appellants, a profit-making organization, was highlighted, showing a net profit of Rs. 1.25 crores the previous year. The Tribunal noted the obligations under the advance licensing scheme and the appellants' failure to fulfill export obligations within the stipulated time, even after the extension. The Tribunal found no fault in the lower authority's order, emphasizing the strict adherence required to the scheme's parameters for duty-free imports. Considering the circumstances, the Tribunal ordered a pre-deposit of Rs. 60.00 lacs towards duty and Rs. 5 lacs towards penalty by a specified date, with the balance amounts dispensed with and recovery stayed pending appeal. Compliance was to be reported by a set date, and the matter scheduled for further review. In conclusion, the Tribunal upheld the duty pre-deposit requirement due to non-compliance with export obligations within the extended period, emphasizing the need for strict adherence to the advance licensing scheme's parameters. The decision balanced the appellants' profit-making status and export efforts with the duty-free import benefits, ordering a partial pre-deposit towards duty and penalty while staying recovery pending appeal. Compliance deadlines were set, and further review was scheduled to monitor adherence to the pre-deposit requirements.
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