9911796707
TMI Blog1997 (6) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... Sipani nil 10,00,000 4. D.K. Sipani nil 10,00,000 2. Shri G. Sampath, learned Counsel for the applicants at the outset pleaded that the applicants have not placed on record any balance sheet of the company concerned or the assets position of the Managing Director and the Joint Managing Director. Notice of hearing, it was pointed out to him, was sent and received by the applicants on 12-5-1997. The appellants obviously, it was pointed to him, have not felt necessary urgency to furnish the balance sheet and the assets position. The learned Counsel argued on the prima facie aspects as also the financial position of the applicants. Briefly stating the facts the learned Counsel has pleaded that the applicants/appellants manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gin, he pleaded, prima facie, should have been allowed abatement. The dealers are not related persons and it is the normal practice in the trade to allow some reasonable margin to the dealers. He has pleaded that if this element is excluded, total duty liability will come to about Rs. 54 lacs. In regard to other elements he has pleaded that he is reserving his pleas to be adduced at the time of final hearing. He has pleaded that the appellants are facing financial difficulties and are not in a position to pre-deposit the amounts as demanded in terms of the impugned order. He has pleaded that the appellants have discontinued the manufacture of the cars and cars are lying unsold and parts imported are lying uncleared in various Customs Houses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts have shown a net loss as on 31-12-1996. The reserves and surplus are 306.23 lakhs. We observe that the figure as have been reflected above do not through light on various aspects which are relevant i.e. depreciation, position of sundry debtors and application of funds etc. for arriving at any conclusions regarding financial position of the appellants. 3. Heard Shri Panneer Selvam, learned DR for the department. He has no specific instructions on the financial position of the appellants. He however, so far as the dealers' margin is concerned states that it is possible that some margin would have been allowed to the dealers. He is not able to controvert the position as claimed by the appellants regarding the quantum of margin allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a pre-deposit of a sum of Rs. 40.00 lakhs (Rupees Forty lakhs) on or before 30-7-1997 and to report compliance by 31-7-1997. Ordered accordingly, subject to this pre-deposit of the balance duty will stand dispensed with. We also direct the appellants company to make a pre-deposit of Rs. 3.00 lakhs (Rs. Three lakhs) towards penalty on the date as indicated above and report compliance by 31-7-1997 subject to which pre-deposit of the balance penalty would stand dispensed with pending appeal. 5. In regard to the Managing Director and the joint Managing Director, we observe that the appellants have resorted to a very ingenuous method for getting full amount of sale price in their hands without informing the department and they chose only t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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