2013 (10) TMI 718 - AT - Central Excise

Shortage of Stock Waiver of Pre-deposit - Held that - The shortages of stocks as ascertained by the officers during their visit to the factory premises of the main appellant M/s. Sabero Organics Gujarat Limited - Since the appellant is disputing the entire proceedings, the amount deposited by the appellant as enough deposit to hear and dispose the appeals - applications for waiver of pre-deposit of balance amounts involved are allowed and recovery stayed till the disposal of appeals Stay granted.

Summary

Issues:
Waiver of pre-deposit of duty, interest, and penalty; Dispute regarding shortage of finished goods during surprise visit; Consideration of deposited amount as sufficient for hearing appeals; Jurisdiction of Single Member Bench.

Analysis:
The judgment by the Appellate Tribunal CESTAT AHMEDABAD involved three stay petitions seeking the waiver of pre-deposit of duty, interest, and penalty, along with personal penalties imposed on individuals. The issue at hand was the dispute regarding the shortage of finished goods noticed during a surprise visit by officers to the factory premises. The appellant contended that they had written a letter directing the reevaluation of the stock position, which was not done. The appellant had already deposited an amount exceeding the confirmed demand, which they requested to be considered sufficient for hearing and disposing of the appeals.

Upon considering the submissions made by the learned departmental representative, the Tribunal found that the appellant was disputing the shortages of stocks as ascertained by the officers during their visit. As the appellant contested the entire proceedings, the amount already deposited was deemed adequate for hearing and disposing of the appeals. Consequently, the applications for the waiver of pre-deposit of balance amounts were allowed, and the recovery thereof was stayed until the appeals were disposed of.

Both parties agreed that the issue fell within the jurisdiction of a Single Member Bench. Therefore, the registry was directed to list the matter before the Single Member Bench in its due course for further proceedings. The judgment was pronounced in court, providing clarity on the decision made by the Tribunal in favor of the appellant based on the dispute regarding the shortage of finished goods and the sufficiency of the deposited amount for the appeals process.