Customs, Excise and Gold Tribunal - Delhi
M/S Durga Trading Co., Sh. Raj Kumar ... vs Cce, Lucknow on 23 May, 2001
ORDER
Lajja Ram
1. For hearing the present appeal M/s Durga Trading Co. are required to deposit Rs. 32 lakhs plus Rs. 14,3000/- penalty of Rs. 32,14,300/-. M/s R.P. Products Rs. 10,000/-, M/s U.P. Marketing, Rs. 10,000/-, Shri Udai Chand Rs. 2 lakhs, Shri Raj Kumar Chaurasia Rs. 50,000/-, Shri Pankaj Chaurasia Rs. 50,000/- and Shri N.K. Pandey Rs. 5,000/-.
2. Appearing for all the applicants Shri Rajesh Chibbar, learned Advocate submits that the duty have been demanded and clandestine removal has been alleged on the basis of the machines installed. The excise duty is on the goods manufactured and there was no scheme for levying duty on the basis of the machines. He submits that out of Rs. 32 lakhs, Rs. 30 lakhs has already been deposited by the assessee as can be seen from para one of the order part in the impugned order. He also submits that a sum of Rs. 8,43,000/- has also been appropriated. As regards M/s R.P. Products, it was the sole proprietary concern of Shri Raj Kumar Chaurasia and M/s U.P. Marketing was the sole Proprietary concern of Shri Udai Chand Chaurasia and the adjudicating authority has imposed separate penalties on the Proprietary concern and on the Proprietor which was not correct. Shri Pankaj Chaurasia was not the manufacturer and was only a relation in whose premises the goods were kept by the manufacturer. Shri N.K. Pandey was an employee. He prays for hearing the appeals without insisting any further pre-deposit.
3. Shri Mewa Singh, learned SDR refers to discussions in the impugned order and submits that it was the case of clandestine removal and a correct view has been taken by the adjudicating authority.
4. After hearing both the sides and on going through the records, at this prima-facie stage in so far as the demand of Rs. 32 lakhs plus Rs. 14,300/- is concerned we waive the requirement of pre-deposit for nearing the appeal and stay of the recovery till the disposal of the appeal. As regards the penalty of Rs. 32,14,300/- imposed on M/s Durga Trading Co. is concern, we direct them to pre-deposit a sum of Rs. 1 lakh Rupees one lakhs only within a period of eight (8) weeks from today. As regards M/s R.P. Products and M/s U.P. Marketing are concerned they are directed to deposit a sum of Rs. 10,000/- (Rupees ten thousand only) each and on depositing the above sums the penalty of Rs. 2 lakhs on Shri Udai Chand Chaurasia and Shri Raj Kumar Chaurasia will be waived till the disposal of the appeal and recovery stayed. The penalty on Shri Pankaj Chaurasia and Shri N.K. Pandey are waived. Thus, M/s Durga Trading Co. to pre-deposit Rs. 1 lakh (Rupees one lakhs only), M/s R.P. Products Rs. 10,000/- (Rupees ten thousand only) and M/s U.P. Marketing Rs. 10,000/- (Rupees ten thousand only). The applicants are directed to deposit the above sums within 8 (eight) weeks from today. If the above amounts are not deposited within the period as stipulated above the appeals will be dismissed without any further notice. Matter to come up for reporting compliance and further orders on 30th July, 2001.
(Pronounced & dictated in the open Court).