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2009 (10) TMI 736 - AT - Central Excise
Issues:
Application for modification of Stay Order regarding deposit of duty and penalties due to financial constraints. Analysis: The appellant, a company director, sought modification of a Stay Order requiring a deposit of Rs. 15 lakhs in addition to Rs. 5 lakhs already paid towards duty and penalties. The appellant claimed lack of financial resources due to a closed factory and unutilized assets. During the hearing, the appellant presented a valuation certificate showing assets worth over Rs. 1.6 crores but stated an inability to pay. He proposed an undertaking not to alienate the property and to deposit rental income until the due amount is cleared. The Tribunal recognized the unproductive state of the factory and land, emphasizing the need to derive income from these assets. Considering the lack of risk to the Revenue as the assets were not rented or mortgaged, the Tribunal accepted the appellant's undertaking proposal. The appellant was directed to submit the undertaking for consideration, ensuring compliance with the direction issued. Upon the appellant's compliance with the direction, submitting an undertaking on stamp paper, the Tribunal accepted the undertaking. The appellant was directed not to dispose of the property until the appeal's disposal and to deposit all rental income with the Revenue until the due amount of Rs. 15 lakhs was paid. Additionally, the concerned Commissioner was directed to issue a "No Objection Certificate" for renting out the property, with the appellant instructed to provide rental agreement copies and inform the Revenue of any changes until the appeal's resolution. Failure to comply would empower the Revenue to take lawful action for dues recovery. In conclusion, the Tribunal granted the modification application, allowing the appellant to lease the property under specified conditions to generate income for depositing the outstanding amount, ensuring Revenue's interest protection and potential dues recovery in case of non-compliance.
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