2004 (1) TMI 555 - AT - Central Excise

Summary

Issues:
1. Waiver of pre-deposit of Central Excise duty and penalty for M/s. Chandra Cement Ltd.
2. Waiver of pre-deposit of penalty for Shri Rajendra Goyal.

Analysis:
1. The advocate for the Appellant argued that Shri Rajendra Goyal, a director of Chandra Cement Ltd., faced financial hardship due to losses in the previous financial year. He claimed that the duty demand was based on documents not belonging to the company, and even if certain documents were accurate, the duty amount was significantly lower than what was confirmed. The advocate requested a waiver of the pre-deposit.

2. The Senior Departmental Representative opposed the waiver, citing that Shri Rajendra Goyal had admitted to the recovery of documents during a visit to the factory premises. The Commissioner did not accept the argument that the entries in the cash book were related to trading firms, as evidence suggested that cement clearances were made from the company's premises. The opposition emphasized the findings recorded by the Commissioner.

3. The Tribunal, after considering both sides' submissions, found that the Appellant Company failed to establish a prima facie case for a complete waiver of the duty pre-deposit. However, acknowledging the financial hardship claimed by the advocate, the Tribunal directed the company to deposit Rs. 15 lakhs, in addition to Rs. 50,000 already paid, within 8 weeks. Compliance with this direction would result in a waiver of the remaining duty pre-deposit and penalties for both applicants, with recovery stayed during the appeal process. The next compliance reporting was scheduled for 18-3-2004.