2014 (4) TMI 184 - AT - Central Excise

Waiver of pre deposit - Duty demand - Held that - Shri Girish Kumar Thampy in his statement has admitted that Shri Rajesh Bhatia was employed by him to make entries in the computer and for the said purpose Shri Rajesh Bhatia was given Rs.2500/- per month. Shri Rajesh Bhatia has admitted that they have made entries in the computer printout. We have already seen the computer printout which reflect the date, RR No., Brake mould, product, quantity, Misc. party and the buyer s name. The product shown in said computer printout is B-1 indicating appellants brand name as Bombay 1000. Railway receipts mentioned in the said computer printout stand recovered by Revenue to a large extent. All these evidences and statements of various persons indicate clandestine activity of Raj Pan Masala (P) Ltd. At this stage, we are of the view that appellants have not made out a prima facie case so as to dispense with the condition of pre-deposit of entire duty and penalty - Conditional stay granted.

Summary

Issues Involved:
Stay petitions disposal based on common order arising from impugned order confirming duty demand and penalty imposition on M/s Shree Raj Pan Masala (P) Ltd. along with penalties on other applicants; Evidence of clandestine activity based on computer printouts, statements, and recovered railway receipts; Requirement of pre-deposit of Rs.50 lakhs by M/s Raj Pan Masala (P) Ltd. within twelve weeks to waive balance duty amount and penalties.

Analysis:

The judgment by the Appellate Tribunal CESTAT NEW DELHI, delivered by Mrs. Archana Wadhwa, addresses the disposal of stay petitions through a common order stemming from an impugned order confirming a duty demand and penalty imposition on M/s Shree Raj Pan Masala (P) Ltd., with additional penalties on other involved applicants. The Tribunal notes that the manufacturing unit of the company was subjected to a search resulting in the seizure of excess gutkha worth Rs.32 lakhs, alongside the recovery of incriminating computer printouts from the marketing manager's personal computer in Bombay. Statements from employees, including the marketing accountant, corroborated the entries reflecting sales and purchases of the gutkha brand, indicating potential clandestine activities.

The Tribunal highlights that the Revenue's case primarily relies on the computer printouts recovered from an employee, supported by statements acknowledging the entries made in the system. The evidence presented includes details such as dates, product information, and buyer names, with railway receipts mentioned in the printouts also being recovered. These findings collectively suggest illicit operations by Raj Pan Masala (P) Ltd. The Tribunal, after considering the facts and circumstances, concludes that the appellants failed to establish a prima facie case to waive the pre-deposit requirement for the duty and penalties imposed.

As a result, the Tribunal directs M/s Raj Pan Masala (P) Ltd. to deposit Rs.50 lakhs within twelve weeks to waive the balance duty amount and penalties, allowing the stay of recovery during the appeal's pendency. The judgment emphasizes the importance of compliance and sets a date for verification. Overall, the Tribunal's decision rests on the evaluation of evidence, statements, and the necessity of pre-deposit in the context of the alleged clandestine activities and duty demands imposed on the involved parties.