2000 (6) TMI 331 - AT - Central Excise

Summary

Issues:
1. Duty confirmation and penalty imposition on M/s. Garg Forgings & Castings Limited.
2. Imposition of penalties on individual applicants under Rule 209A of the Central Excise Rules.
3. Allegation of clearing auto parts forgings as cycle parts forgings without duty payment.
4. Dispute over evidence and financial hardship claims by the applicants.

Analysis:
1. The judgment confirmed a duty of Rs. 29,06,902/- on M/s. Garg Forgings & Castings Limited along with an equal penalty imposition. Additionally, penalties of Rs. 5 lakhs each were imposed on individual applicants under Rule 209A of the Central Excise Rules.

2. The case involved M/s. Garg Forgings and Castings Limited allegedly clearing auto parts forgings as cycle parts forgings without paying excise duty. The applicants, who were also directors of the company, were accused of channeling auto parts forgings through trading firms to evade duty payment.

3. The applicants argued that there was no direct evidence of duty evasion and cited a previous visit by revenue officials where they were found manufacturing cycle parts forgings. However, the tribunal found discrepancies in the evidence and rejected the claim of manufacturing cycle parts. Despite claims of financial hardship and citing a Supreme Court case for waiver of duty pre-deposit, the tribunal ordered M/s. Garg Forgings & Castings Limited to deposit Rs. 8 lakhs and one of the applicants to pay Rs. 2 lakhs within 8 weeks.

4. The tribunal, considering the financial status of the applicants and the evidence presented, did not grant a total waiver of duty and penalty. Instead, partial deposits were ordered, and further recovery was stayed during the appeal process. The case was scheduled for compliance reporting on a specific date.

This detailed analysis covers the duty confirmation, penalty imposition, allegations of duty evasion, evidence disputes, and the tribunal's decision based on financial hardship claims and legal precedents.