1999 (6) TMI 275 - AT - Central Excise

Summary

Issues:
Waiver of pre-deposit of duties and penalties, stay of recovery, denial of natural justice, quantification of duty evaded, voluntary payment by assessee, confiscation of property, imposition of penalties.

Waiver of Pre-deposit and Denial of Natural Justice:
The judgment involved five applications seeking waiver of pre-deposit of duties and penalties, all arising from the same impugned order. The applicants claimed denial of natural justice due to incomplete documentation for the entire period of demand. Despite reminders, the applicants failed to submit documents, leading to the Collector passing the order without complete information. The Commissioner's order highlighted repeated adjournments sought by the applicants, indicating a lack of cooperation. The Tribunal observed that the applicants failed to make a strong case for denial of adequate opportunity, as they had the necessary documents but did not utilize them effectively.

Quantification of Duty Evaded:
Regarding the quantification of duty evaded, the applicants argued that they were not provided with essential documents like inspection registers and returns. They contended that the demand was based on misprinted duplicate invoices and insufficient evidence of goods supplied to the Railways. However, the Tribunal found that the applicants possessed the required documents to demonstrate the actual duty payable independently. By not utilizing the available documents effectively, the applicants failed to substantiate their claim of inadequate information.

Voluntary Payment and Imposition of Penalties:
The judgment discussed the voluntary payment of a significant sum by the applicants towards the confirmed duty. The Tribunal noted the applicants' claim that the payment was to maintain good relations with the department, which was deemed unconvincing. The statements of co-noticees revealed a conscious scheme of using duplicate invoices for clandestine removal of goods. The Commissioner confirmed the duty demand and imposed penalties on the company and individual noticees based on the evidence presented.

Confiscation of Property and Stay of Recovery:
The Commissioner ordered the confiscation of land, building, etc., but allowed redemption upon payment of a fine. The Tribunal directed the applicants to deposit specific amounts towards the confirmed duty, with a waiver of penalties for minor noticees. The judgment granted a stay of recovery and permitted the utilization of plant and building, subject to an undertaking not to dispose of any assets during the proceedings.

In conclusion, the judgment addressed issues related to denial of natural justice, quantification of duty evaded, voluntary payment, imposition of penalties, confiscation of property, and stay of recovery, providing detailed analysis and directives based on the arguments presented and evidence available during the proceedings.