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TMI Blog2002 (11) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... required to pre-deposit a sum of Rs. 1,40,49,765/- as penalty in terms of Rule 57-I (4) of the Central Excise Rules, 1944. A sum of Rs. 10 lakhs was also imposed as penalty on Shri Mohsin Khan, Partner of the appellants-firm in terms of Rule 209A of the Central Excise Rules. 2. Ld. Counsel, Shri B.N. Chattopadhyay appearing on behalf of the appellants, submitted that the petitioners could not use the raw materials namely, HDPE granules purchased and received by them in their factory inasmuch as the said raw materials was not in accordance with the specification prescribed by the Department of Tele Communication (DoT) and they had to use other materials which were confirming by name, Pilene HDPE PM 10501. In this connection, they submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... put a lot of hardship if they are asked to pay duty and penalty before the appeal is finally heard. They also submitted that they have got a very bad financial condition and the petitioner had only a nominal profit of Rs. 38,515.18 during the financial year 2000-2001. With this nominal and meagre profit, the appellants are not in a position to deposit the amount of Rs. 1,40,49,765/- as duty and equal amount of penalty. In view of the above, they have requested to waive the condition of pre-deposit un-conditionally. Shri B.N. Chattopadhyay, ld. Consultant also invited our attention to the judgment rendered by South Zonal Bench, Bangalore in the matter of Tata Telecom Ltd. v. CCE., Cochin reported in 2001 (133) E.L.T. 339 (Tri. Bang.) wherei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pressure rating PN10 of PE63 material grade for directly barried underground optical fibre cable conduits conforming to DoT specification No. G/CDS-05/01 Dec. 1994 with Amendment No. 1 of May, 1997. All the similar rate contracts provide similar requirements. Ld. DR also invited our attention to the findings of the ld. Commissioner in which the Commissioner has mentioned about the report given by the Central Institutes of Plastic Engineering and Technology (CIPET), Ministry of Chemical Fertilizer, Government of India, Bhubaneswar and CIPET vide their letter CIPET/BBSR/TEST/SKN/2000-01/1848, dated 1-9-2000, inter alia, confirmed that the raw material as shown in the chart supplied to them are not suitable to manufacture HDPE Pipes as per s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es vide Order No. S-889-891/Kol/2002, dated 10-9-2002 has directed the appellants to pre deposit a sum of Rs. 35 lakh on the duty amount of Rs. 76,53,969. Similarly, in the case of Agrodoot Pipes Pvt. Ltd. v. Commr. of Central Excise, Kol.-I, the Tribunal vide Order No. S-1001-1002/Kol/2002, dated 1-11-2002 in a similar case where the pre-deposit of duty amount was 1,10,93,649.00, directed the appellants to pre-deposit a sum of Rs. 35 lakhs. He, therefore, requested that the appellants should be put to strict terms and should be asked to pre-deposit the full amount of duty of Rs. 1,40,49,765/- and an equal amount of penalty as well as penalty imposed on Shri Mohsin Khan, Partner of the appellant-Company. 4. We have considered the submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w the poor financial condition of the appellants and since the appellants do not have a prima facie case in their favour, we direct them to pre-deposit a sum of Rs. 35 lakhs (Rupees thirty five lakhs only) within a period of eight weeks from today and balance amount of duty and penalty shall be waived and its recovery stayed during the pendency of the appeals. However, it is made clear if the above mentioned amount is not pre-deposited within a period of eight weeks from today, their appeal shall be dismissed under Section 35F of the Central Excise Act, 1944. We also waive pre-deposit of penalty of Rs. 10 lakhs (Rupees ten lakhs only) on Shri Mohsin Khan partner of the appellant firm. We order accordingly. Matter to come up for ascertaining ..... X X X X Extracts X X X X X X X X Extracts X X X X
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