Customs, Excise and Gold Tribunal - Delhi
M/S. Freezair India (P) Ltd. vs Cce, New Delhi on 14 May, 2001
ORDER
Lajja Ram
1. For hearing their appeals, M/s Freezair India (P) Ltd. are required to deposit duty amount of Rs 45,62,325/-, penalty amount of Rs 45,62,325/- and Shri Kuldeep Singh Punn Rs 3 lakh imposed by way of penalty and Shri Narender Singh Punn Rs 2 lakh by way of penalty.
2. Shri K.K. Anand, advocate, submits that M/s Freezair India (P) Ltd. had already deposited a sum of Rs 5 lakh even before the adjudication and this amount has been appropriated as will be clear from para 44 of the impugned order-in-original. He further submits that the proceedings relate to the period when the company was a sole proprietory concern of Shri Kuldeep Singh Punn, but the duty has been demanded in the impugned order from the private limited company which came into force subsequently. He submits that the company is in financial difficulties and they have a arguable case in their favour.
3. Shri M.M. Dubey, JDR, refers to the detailed discussion in the impugned order and reiterates the grounds taken by the adjudicating authority in confirming the demand and in imposing the penalties.
4. After hearing both the sides, at this prima facie stage, we consider that the matter has to be gone into in detail at the time of the final hearing. At this stage, we consider that the interest of Revenue will be safeguarded if M/s Freezair India (P) Ltd. are directed to deposit a further sum of Rs 10 lakhs (rupees ten lakhs only) and Shri Kuldeep Singh Punn a sum of Rs 1 lakh (rupees one lakh only) and Shri Narender Singh Punn a sum of Rs 1 lakh (rupees one lakh only). We direct so. M/s Freezair India (P) Ltd. will deposit a further sum of Rs 10 lakhs (rupees ten lakhs only) within a period of three months from today. Similarly, Shri Kuldeep Singh Punn and Shri Narender Singh Punn will also pre-deposit a sum of Rs 1 lakh (rupees one lakh only) each within a period of three months from today. On pre-depositing the above sum within the period stipulated above, the pre-deposit of the balance duty amount as well as penalty amount will be waived and recovery stayed till the disposal of the appeals. It is made clear that if the terms of the above order are not complied within the period stiuplated above, then the respective appeals of the company as well as the two Directors will be dismissed without any further reference to them. To come up for reporting compliance and further orders on 21st August, 2001.
(Dictated & pronounced in the open court)