TMI Blog1997 (6) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Dolphin Motors nil 10,00,000 3. R.K. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He has pleaded that the dealers were given uniform margin of Rs. 21,000/- per car sold by them and this dealer s margin, 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for both the years not provided. For SIPANI AUTOMOBILES LTD. R.K. SIPANI CHAIRMAN He has pleaded that the appellants are loss making unit. On perusal of this, we find that the appellants 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 instruc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are indicated as 306.23 lakhs. It is only when full facts by way of balance sheet are placed before us we can appreciate the financial hardship of the appellants. In the above circumstances, therefore, we hold that ends of justice would be served if the appellants company is called upon to make 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 wou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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