Customs, Excise and Gold Tribunal - Delhi
Toshika International Ltd. vs Commissioner Of C. Ex. on 19 October, 2004
Equivalent citations: 2005(180)ELT127(TRI-DEL)
ORDER
Jyoti Balasundaram, Vice-President
1. The applications for waiver of pre-deposit of Rs. 1,61,96,088/- and penalty of equal amount imposed on the manufacturer and penalty of Rs. 16 lakh imposed on Managing Director arise out of the order of the Commissioner of Central Excise, who has confirmed the demand on the ground that the manufacturing unit had evaded duty during the period from 1-2-1998 to 31-3-2001 by way of clandestine removal of the said goods and fraudulent availmenl of small scale exemption notifications.
2. We have heard both the sides. Regarding financial position of the applicants, they showed the balance-sheet for the years 1998-99 and 1999-2000 issued by M/s. Aneet & Associates, Chartered Accountants. The Chartered Accountant has also deposed that he has given certificates after examination of sales records/ ledger & stock register produced by the applicants for the above mentioned period. We also note that the balance-sheets for the years 1998-99 and 1999-2000 were submitted by the applicants to the Directorate of Health & Family Welfare, Punjab in response to the medicine tender issued for the figures of clearance of 2000-2001 taken from the letter dated 25-7-2001 of the Managing Director of the Company. In these circumstances, the contention of the applicants that inflated figures were given for the purpose of taking loan, prima facie, is not accepted. We also note that in spite of show cause notices having been issued for producing the balance-sheet no reply for the same was sent and hearings were not attended by them. Therefore, prima facie, there is no violation of principles of natural justice. The balance-sheet produced before us is the balance-sheet for the previous period and thus, the same is not acceptable to support the plea of financial hardship. Having regard to the totality of the facts and circumstances of the case, we direct the applicants to deposit a sum of Rs. 30 lakh within 8 weeks and on such deposit, the pre-deposit of remaining amount shall stand dispensed with and recovery of the same will remain stayed during the pendency of the appeal. Failure to, comply with this direction will result in dismissal of the appeals. To come up for reporting compliance on 29-12-2004.