2013 (8) TMI 266 - AT - Central Excise

Waiver of pre-deposit clandestine removal Held that - Following the judgment of Hon ble High Court of Gujarat in the identical case of Belgium Glass and Ceramics .., it is directed to assessee to deposit an amount which is equivalent to 8% of the total duty confirmed by the adjudicating authority - Amount is short to the tune of Rs. 8 Lakhs, as the appellant is required to deposit approximately Rs. 26 Lakhs and they have deposited only Rs. 18 Lakhs. Accordingly, appellant is directed to further deposit an amount of Rs. 8,00,000/- (Rupees eight lakhs only) within a period of eight weeks.

Summary

Issues:
Clandestine removal of tiles and undervaluation of goods manufactured in the factory premises; Deposit amount discrepancy; Financial hardship of the appellant.

Analysis:
The judgment by the Appellate Tribunal CESTAT Ahmedabad revolves around the issues of clandestine removal of tiles and undervaluation of goods manufactured in the factory premises. The appellant had already deposited Rs. 18 Lakhs out of the total demand confirmed by the adjudicating authority. The appellant argued that, based on a previous judgment by the Hon'ble High Court of Gujarat in a similar case, the amount deposited should be considered sufficient due to financial hardship. However, the Tribunal noted that the appellant fell short of the required 8% deposit by Rs. 8 Lakhs, directing the appellant to deposit the remaining amount of Rs. 8,00,000 within eight weeks for compliance. The Tribunal emphasized consistency in directing assessees to deposit an amount equivalent to 8% of the total duty confirmed by the adjudicating authority, following the precedent set by the High Court.

The Tribunal's decision was based on the principle of ensuring compliance with the deposit requirements in line with previous judgments. The Tribunal acknowledged the financial hardship faced by the appellant but emphasized the need for adherence to the established deposit norms. By directing the appellant to deposit the shortfall amount within a specified timeline, the Tribunal sought to maintain consistency and uphold the precedents set by higher courts. The Tribunal's decision also highlighted the importance of timely compliance and the significance of following established legal procedures in matters related to duty payments and financial obligations.

In conclusion, the judgment underscores the significance of adhering to deposit requirements as per established norms and judicial precedents. While considering the appellant's financial hardship, the Tribunal prioritized consistency and compliance with the directives set by higher courts. The decision aimed to strike a balance between the appellant's circumstances and the legal obligations, ensuring that the deposit amount aligns with the prescribed percentage of the total duty confirmed by the adjudicating authority.