9911796707
TMI Blog2014 (12) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufactures stainless steel billets (S.S. Billets), S.S. Flats, steel castings and other alloy steel falling under Chapter Heading No. 72 of the Central Excise Tariff Act, 1985. On the basis of intelligence information that the assessee was indulging in a suppression of production and clandestine clearance of S.S. Billets/ flats by showing excessive consumption of Chromium for the purpose of evading central excise duty, a search took place at the premises of the assessee and of the residential premises. During the course of the search, samples were drawn and were sent to the National Metallurgical Laboratory, Jamshedpur for testing to determine the percentage of Chromium. A test report was obtained. During the course of an investigation, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lty. The assessee challenged the order of the Tribunal before this Court in Central Excise Appeal No. 44 of 20093. At the hearing of the appeal, the learned Counsel appearing on behalf of the assessee raised a submission on the ground of financial hardship stating that the assessee had invoked the jurisdiction of the Board for Industrial and Financial Reconstruction4. A Division Bench of this Court by an order dated 17 April 2009 observed that since the Tribunal had deferred the date of compliance till 5 May 2009 in view of the pendency of the appeal, it was open to the assessee to take such a plea before the Tribunal. The Division Bench, therefore, did not consider it necessary to interfere with the order of the Tribunal at that stage and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 35-F of the Central Excise Act 1944 during the pendency of the Appeal when the interest of the Revenue is completely secured as the land, plant, machinery, material and vehicles etc. valued on much more than the duty and penalty demanded and are lying confiscated and the Appellants are not able to redeem the same on payment of a redemption fine of Rs. 50 Lakhs till date; (ii) Whether the Hon'ble Tribunal is justified in directing the Appellants to deposit Rs. 40 Lakhs during the pendency of the Appeal when admittedly the factory is lying closed and the factory has been declared a sick unit and is registered before the BIFR; (iii) Whether the Hon'ble Tribunal is justified in directing the Appellants to deposit Rs. 40 Lakhs in compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Act 1944; and, (ix) Whether the Hon'ble Tribunal is justified in accepting suppression of production and its clandestine removal merely on the basis of one input alleged to be used on the higher side." On merits, at this stage, we may note that the Adjudicating Authority, in confirming the demand of duty, has come to the conclusion that the claim of the assessee to have earned commission in lieu of the services rendered by it, is factually incorrect and that, as a matter of fact, such a plea was unfounded. The Adjudicating Authority has found that the assessee had suppressed its actual production with a view to clandestinely remove the excisable goods without the payment of excise duty. When the matter had traveled before the D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re-deposit by the Director in respect of a penalty which was imposed. However, after the order of the Division Bench dated 17 April 2009 requiring the Tribunal to consider the issue of financial hardship, the Tribunal while reiterating the earlier order has also imposed an additional requirement of pre-deposit of Rs. 10 lacs by the Director. In our view, it would be appropriate and proper to waive the requirement of pre-deposit of Rs. 10 lacs by the Director. We are, accordingly, of the view that the order of the Tribunal does not warrant interference save and except that the requirement of pre-deposit of Rs. 10 lacs on account of the penalty imposed upon the Director shall stand waived. The appeals have been dismissed by the Tribunal for ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
