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2012 (11) TMI 151 - HC - Central ExciseWaiver of pre deposit - Rectification Application rejected - seeking recall and modification of the previous order directing payment of Rs.6 Crores as pre deposit - Held that:- Section-3A imposes liability on the basis of the assumptions which can be drawn. However, the assumptions have to be linked to or based upon some objective materials based upon the available evidence. No doubt, the data in the pen drive indicated certain figures and the person from whom it was seized suggested that these reflected the sales figures of the assessee. At the same time, the Commissioner was also alive to the fact that the production capacity of the Unit was 75 MT per month which would have worked out to maximum of 600 MT. In the eventuality, the duty liability would have been in the range of Rs. 74-75 Lakhs. Then there is absolutely no discussion on this aspect in the Order in Original. Though this appears to have been urged before the Tribunal, the latter did not give sufficient weightage to this aspect and appears to have adopted a rough and ready rule while directing pre-deposit of Rs. 6 Crores which it refused to alter when the rectification application was made. The Tribunal’s order does not reflect any discussion on the relative hardship which would be visited upon the appellant in the light the latter is constrained to make the deposit, thus having regard to the above factors, the directions of the Tribunal are required to be altered. Instead of Rs. 6 Crores, the appellant shall deposit a sum of Rs. 1.5 Crores. The balance of the demand shall be secured through bond to the satisfaction of the excise authorities. The appellant is permitted to make the deposit of Rs. 1.5 Crores in two instalments provided the entire amount is deposited on or before 31.12.2012.
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