2014 (4) TMI 714 - AT - Central Excise

Waiver of the pre-deposit - Clandestine removal of chhakdo rickshwas - Violation of principle of natural justice - Non furnishing of various documents - Held that - conduct of the assessee before the lower authorities is also deplorable, in as much as they have been seeking documents at various times and sometimes asking for the copies of the show cause notice stating that they were misplaced. Suffice to say that the assessee has been trying to delay the adjudication proceeding by seeking various documents at various times - Decided conditionally in favour of assessee.

Summary

Issues:
Stay petitions for waiver of pre-deposit of duty liability, interest, and penalties on clandestinely removed chhakdo rickshwas.

Analysis:
The judgment pertains to stay petitions filed for the waiver of pre-deposit of duty liability, interest, and penalties on clandestinely removed chhakdo rickshwas, along with penalties on the partner of the main appellant. The judges heard both sides and noted that factual verification of the issues was necessary. The appellant's counsel argued that the case was based on details from RTO agencies, but the department had not provided the requested reports. The partner's statement, admitting to clandestine removal, was retracted, alleging coercion during recording. The department argued that the partner's admission was sufficient, and the appellant had delayed proceedings by seeking unnecessary documents repeatedly.

Upon consideration, the judges found merit in the appellant's argument regarding the lack of supplied documents supporting the duty liability claim based on RTO details. They noted the appellant's conduct in delaying proceedings but also acknowledged a violation of natural justice due to the lack of document disclosure by the authorities. As a result, the appellant was directed to deposit Rs.25 lacs and provide a list of required documents for defense. The adjudicating authority was instructed to provide the requested documents within four weeks and then reconsider the case following natural justice principles.

In conclusion, the stay petitions and appeals were disposed of, emphasizing the need for factual appreciation, cooperation in proceedings, and adherence to natural justice principles.