Customs, Excise and Gold Tribunal - Mumbai
Rajani Silk Mills, Raghunandan Dyg. And ... vs Commissioner Of Central Excise on 20 April, 2004
ORDER Archana Wadhwa, Member (J)
1. All the stay petitions are being disposed of by this common order as they arise out of the same impugned order passed by the authorities below vide which duty of Rs. 5,62,311/- has been confirmed against the main appellants M/s. Raghunandan Dyeing & Ptg. Ltd. alongwith imposition of personal penalty of identical amount on the findings of clandestine processing and removal M.M. Fabrics. In addition personal penalty of Rs. 1,25,000/- has been imposed on Shree Rani Prasad Bhavarlal Jhavar director of the company under the provision of Rule 26 of the Central Excise Rules 2002 and penalty of Rs. 16,000/- and Rs. 11,000/- has been imposed on M/s. Rohit Silk Mills and Rajani Silk Mills respectively.
2. After hearing Shri K.I. Vyas, learned advocate and Shri Bidhan Chandra, learned J.D.R., I find that the findings of the clandestine removal is based upon the entry made in the grey fabrics register of the processing unit and the shortage of the same during the course of preventive checks by the officers conducted in the said unit on 27.12.2001 at the time of visit of the officers. The investigation conducted into the matter, resulting in recording of statement of the director of the company and two traders, further reveal the fact of clandestine removal. The director as well as the two trading units admitted have been indulged in clandestine activities and clearances of the fabrics without payment of duty. Though the learned advocate has challenged the said statement and the resultant findings of the Adjudicating authority, he fairly made an offer to deposit part amount of duty. Shri Bidhan Chandra learned J.D.R., appearing for the Revenue submits that the fact of clandestine removal stands duly corroborated by the statement of various persons and there is no doubt about the clearances of the fabrics without payment of duty, in which case the appellants should be directed to deposit the entire amount of duty and penalty.
3. After considering the submissions made by both the sides and after going through the impugned order, I find that the evidentiary value of various statements can only be weighted at the time of final disposal of appeals. Suffice it to say at this point that the appellants have not been able to make out a prima-facie case in its favour so as to dispense with the condition of pre-deposit of duty and penalty in totality. Financial hardship has not been pleaded before me. Accordingly, taking into account the overall facts and circumstances, I direct M/s. Raghunandan Dyeing & Ptg. Pvt. Ltd. to deposit an amount of Rs. 3 Lakhs within eight weeks from today. Subject to deposit of the said amount, pre-deposit of the balance amount of duty and entire amount of penalties imposed upon the said appellants and also on the other appellants stands waived and its recovery stayed. The matter to come up for ascertaining compliance on 21.6.2004, when the appeal itself will be taken up for final disposal subject to ascertaining compliance.