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2014 (11) TMI 423 - HC - Central ExciseWaiver of pre deposit - Revenue appeal - Confiscation of certain seized raw material - Provisional release of goods - Redemption fine - Clandestine removal of goods - Suppression of production of goods - Held that:- Assessee had not obtained central excise registration. The principal manufacturers, from whom the assessee had obtained the poly film allegedly on job work basis, were not registered for the purposes of central excise and were not found to be paying central excise duty on the goods received from the assessee nor were they found to be using the goods in the manufacture of dutiable goods. The Managing Director of the assessee admitted during the course of his statement that the assessee was undertaking manufacturing activity without obtaining central excise registration and was clearing the goods without payment of excise duty. These facts cannot simply be brushed aside particularly at the prima facie stage while considering an application for waiver of pre-deposit. On these facts, it cannot be held that the assessee had made out a prima facie case either for a waiver of pre-deposit in totality or for an order to the effect that a further amount of ₹ 20 lacs, as stated on behalf of the assessee, would amount to a fair order on the application for waiver of pre-deposit. Having due regard to the quantum of duty demand of ₹ 3.85 crores, an order for the deposit of ₹ 20 lacs over and above the amount of ₹ 40 lacs, which has already been deposited by the assessee, cannot be regarded as amounting to a proper exercise of the discretion in law by the Tribunal. We are of the view that the ends of justice would be met if the assessee is directed to deposit a total amount of ₹ 1 crore after giving due credit for the amount of ₹ 40 lacs, which has already been deposited by the assessee. - Stay order of the tribunal modified - Decided in favor of revenue.
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