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2012 (8) TMI 171 - AT - Central ExciseNon Compliance - the assesses, who had availed Modvat credit on the basis of modvatble invoices were directed to reverse the entire Modvat credit, the other appellants, who were registered dealers and had issued the invoices, were directed to deposit 50% of the penalty amounts imposed upon them. - appeals are liable to be dismissed for non-compliance with the provisions of Section 35F of the Central Excise Act.
Issues: Compliance with stay order regarding Modvat credit and penalty amounts imposed.
The judgment by the Appellate Tribunal CESTAT, New Delhi, involved the compliance with a stay order issued on 1.11.2010. The order directed assesses who availed Modvat credit on the basis of modvatble invoices to reverse the entire credit, while registered dealers who issued the invoices were instructed to deposit 50% of the penalty amounts imposed on them. The Revenue informed the Tribunal that most appellants complied with the stay order, except for a few, including Triveni Castings P. Ltd. The Revenue highlighted that Triveni Castings P. Ltd. challenged the stay order in the High Court, which rejected their petitions. The matter then reached the Supreme Court, which extended the deposit deadline for Triveni Castings P. Ltd. by four weeks. Despite this extension, Triveni Castings P. Ltd. only paid a partial amount through Modvat credit, falling short of the total duty confirmed against them. Consequently, the Revenue requested the dismissal of the appeal due to non-compliance. The Tribunal found that appellants Ravish Steel, Shri Vijay Gupta, and Triveni Castings P. Ltd. failed to comply with the stay order and subsequent court orders. Specifically, Triveni Castings P. Ltd. only deposited a portion of the required amount through Modvat credit, leaving a significant balance outstanding. As a result, the Tribunal concluded that these appellants did not fulfill the provisions of Section 35F of the Central Excise Act, in conjunction with the relevant court orders. Therefore, the Tribunal decided to dismiss the appeals of these non-compliant appellants for failing to adhere to the specified orders and directives.
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