RAKESH KUMAR AGGARWAL Vs. CEGAT, NEW DELHI

JUDGEMENT

(1.) CHALLENGE in this writ petition is to the order passed by Customs, Excise and Gold (Control) Appellate Tribunal ('Tribunal' in short) disposing of the application filed for waiver of pre -deposit of penalties and stay of recovery thereof during the pendency of Appeal No. C/374/2000/NB and other connected appeals. It directed deposit of Rs. 30 lakhs against the disputed demands of Rs. 90.75 lakhs. The demands have arisen on account of the orders passed by the Commissioner of Customs (in short 'the Commissioner') under the Customs Act, 1962 (in short 'the Act'), the demands raised are as follows:

(2.) THE demands have been raised primarily on the ground that non -ferrous metals, imported by M/s. Minerals and Metals Trading Corporation of India Limited (in short 'MMTC') and procured through MMTC by the eight units aforementioned, owned by the petitioner, were never used in these units for manufacture of final products as required by the relevant import policy but were disposed of in the open market, contrary to the actual user condition. Commissioner came to hold that penalty was imposable in view of admission by the petitioner that the eight units were owned by him and that the raw material allotted to the units during the year 1988 -89 were disposed of in the open market through brokers.

(3.) LEARNED Counsel for the petitioner submitted that Tribunal has not taken into account relevant aspects and has merely gone on the basis of unfounded allegations about non -user and/or disposal of raw materials allotted in the open market through brokers. It is also submitted that financial condition of the petitioner has deteriorated and he is not in a position to deposit Rs. 30 lakhs as directed by the Tribunal. Learned Counsel for the respondent supported the orders stating that Tribunal has taken a liberal view directing to deposit Rs. 30 lakhs when considered in the background of factual aspect which lead to the adjudication.