Custom, Excise & Service Tax Tribunal
M/S Hathway Systems (India) Pvt. Ltd., & ... vs Cce, Jaipur on 20 October, 2008
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL,
R.K. PURAM, W.B. NO.2, PRINCIPAL BENCH
NEW DELHI, COURT NO.I
Excise Appeal Nos. 702 703 & 3220 of 2008 with
Excise Stay Nos. 691- 692 & 2868 of 2008
[Arising out of Order-in-Appeal Nos. 365-366 (RKS)/CE/JPR-1/2007 dated 28.12.2007 passed by the Commissioner of Central Excise (Appeals), Jaipur]
Date of Hearing/ decision: 20.10.2008
M/s Hathway Systems (India) Pvt. Ltd., & Others Appellant
Vs.
CCE, Jaipur Respondent
Appearance:
Mr. Atul Gupta, Co. Secy. for the Appellant
Mr. V. Choudhary, DR for the Respondent
CORAM: Mr. Justice S.N. Jha, President
Mr. M. Veeraiyan, Member (Technical)
O R D E R
Per M. Veeraiyan:
,,,,,,,,,M/s Hathway Systems (India) Pvt. Ltd., is a 100% EOU and Mr. Ranbir Tyagi & Jagmohan Tyagi are the Directors of the company. The applicant company imported duty free scrap and were required to manufacture ingots and export. During visit by the officers, it was noticed that substantial quantities (about 50%) of finished goods was not accounted at the time of visit. Private records indicating unaccounted production and clandestine removal was also recovered. The original authority demanded duty of Rs.43,45,503/- and imposed penalties under various sections and imposed Rs. 2 lacs each on the Directors.
2. Learned Advocate submits that the verification of stock continued for more than five days and one of the witnesses have filed affidavit stating that he was not present during stock taking; cross examination of some of the witnesses including panch witnesses were not allowed. The Commissioner (Appeals) ordered pre-deposit of the entire amount of duty and dismissed the appeal for non-compliance with the provisions of Section 35F of the Central Excise Act, 1944.
3. Learned DR submits that as a 100% EOU they are permitted to import scrap without the requirement of licence and such import is not permissible for other units. The imported scrap has not been utilized for the intended purposes and finished goods have been clandestinely diverted to the domestic market. It is clear and admitted case of clandestine removal of the goods.
4. We have carefully considered the submissions made from both sides. We find huge shortage of stock of goods at the time of visit by the officers. The private records, prima-facie indicated unaccounted production and clandestine removal.
5. Having regard to the facts and circumstances of the case, we direct the applicant to deposit Rs. 25 lacs within eight weeks from today. Subject to payment of deposit of the amount as above, pre-deposit of balance amount of duty and penalty on the appellant company and the penalties on the applicant Directors is waived and recovery thereof stayed. If the compliance is reported, the Tribunal will consider the prayer to remit the case back to Commissioner (Appeals) for considering the appeal on merits.
6. Compliance to be reported on 23.12.2008.
[Dictated and pronounced in the open Court].
[Justice S.N.Jha] President [M. Veeraiyan] Member (Technical) [Pant]