1999 (2) TMI 153 - AT - Central Excise

Summary

Issues:
- Confirmation of duty and imposition of penalties
- Violation of principles of natural justice in the proceedings
- Request for waiver of pre-deposit and stay of recovery

Confirmation of Duty and Imposition of Penalties:
The judgment involves three appeals arising from a single impugned order where the Commissioner confirmed duty amounting to Rs. 21,05,705 and imposed penalties on the appellants. The penalty was Rs. 20 lakhs on M/s. Anand Udyog and Rs. 2 lakhs each on Shri A.B. Kanade and Shri S.B. Kanade. The applicants sought waiver of pre-deposit of these sums and stay of recovery. The Commissioner had reproduced all points raised in the reply to the show cause notice but did not narrate the circumstances under which he proceeded with the matter despite the last request made by the assessees. The Tribunal found that the grounds disclosed in the show cause notices and the discussions made by the Commissioner did not warrant a remand of the case. Consequently, M/s. Anand Udyog was directed to deposit Rs. 4 lakhs towards the confirmed duty within 10 weeks, allowing for installment payments as long as the last installment is made before the prescribed date. Upon this deposit, the pre-deposit of the remaining duty and penalties on all appellants would be waived, and the recovery stayed.

Violation of Principles of Natural Justice in the Proceedings:
The applicants argued that the Commissioner's action in passing the order without hearing them violated the principles of natural justice. They contended that the Commissioner did not mention their application for adjournment of the proceedings or provide reasons for not accepting their request in the impugned order. On the other hand, the Revenue submitted that the assessees had been warned that failure to appear for the personal hearing might lead to ex parte proceedings. The assessees had sought adjournment on the last possible date for various reasons, which the Revenue argued did not stand. The Revenue relied on a Tribunal judgment in a similar case to support their stance. Ultimately, the Tribunal did not find merit in the request for a remand based on the violation of natural justice principles, as the Commissioner had covered the points raised in the show cause notice and discussions adequately.

Request for Waiver of Pre-deposit and Stay of Recovery:
The applicants sought waiver of pre-deposit and stay of recovery for the duty and penalties imposed. After considering the submissions made, the Tribunal directed M/s. Anand Udyog to deposit Rs. 4 lakhs towards the confirmed duty within 10 weeks, with the option of paying in installments as long as the final installment is made before the prescribed date. Upon this deposit, the pre-deposit of the remaining duty and penalties on all appellants would be waived, and the recovery stayed. The matter was scheduled for compliance verification on a specified date.