1999 (4) TMI 257 - AT - Central Excise

Summary

Issues:
1. Financial hardship claimed by the applicants.
2. Insufficient evidence to establish financial hardship.
3. Prima facie acceptance of financial hardship.
4. Lack of conclusive evidence for financial hardship.
5. Waiver of deposit upon compliance.

Analysis:
1. The judgment pertains to applications filed by two assessees and their directors claiming financial hardship due to being sick industrial undertakings. The common advocate argued solely on financial hardship, citing losses in the balance sheets of the companies. However, the evidence provided was deemed insufficient by the departmental representative.

2. The Tribunal found it challenging to accept the claim of financial hardship for the assessees based on the evidence presented. While the balance sheet for one company showed significant losses in a specific year, there was a lack of subsequent financial data to assess if the losses were recovered. Additionally, claims of pending loans were unsubstantiated by concrete evidence.

3. The situation was even more uncertain for the other assessee, as only a provisional balance sheet was presented without any application to the Board for Industrial and Financial Reconstruction (BIFR). The authenticity of the bank statement was also questioned, leading to an inconclusive evaluation of financial hardship.

4. The judgment highlighted the absence of specific averments regarding financial hardship for the directors, emphasizing that the claims primarily indicated hardship on the company's part without supporting evidence from the individual applicants. Consequently, the lack of substantial proof hindered a definitive conclusion on their financial status.

5. Since no arguments were presented on the merits of the case, the Tribunal directed the deposit of specified amounts within two months to waive the remaining duty, penalties, and redemption fines imposed on the assessees and directors upon compliance by a specified date. This decision aimed to address the financial obligations while considering the claims of financial hardship made by the applicants.