SHIVANI SYNTHETICS LTD Vs. UOI

JUDGEMENT

(1.) An order dated 21 January 2003 passed by the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi (for short the Tribunal) under section 35F of the Central Excise Act, 1944 (for short the Act), directing petitioner No.1 herein, viz., Shivani Synthetics Ltd. to deposit a sum of Rs.20 lacs within a period of 8 weeks from the date of the order as a pre-condition for entertainment of the four appeals filed by the present petitioners, is under challenge in this writ petition.

(2.) Briefly stated the background facts, giving rise to the petition are: The first petitioner is engaged in the manufacture of Polyester Yarn. The officers of the Directorate General of Anti Evasion visited the office of the said petitioner and one M/s.Haryana Petro Chemicals Ltd., petitioner No.2 herein, and seized bill discounting documents . The said bills of discounting were allegedly in the name of one M/s.Globe Synthetics Ltd and petitioner No.1. It was alleged that petitioner No.1 had clandestinely removed Polyester Yarn from its premises, valued at Rs.2,06,41,358/- without payment of duty under these bill discounting documents during the period from September 1994 to April 1995. After obtaining reply to the show cause notices, the Commissioner of Central Excise, New Delhi confirmed the duty demand of Rs.1,35,44,614/- against petitioner No.1. In addition thereto a penalty of Rs.1 crore was also imposed on them. A penalty of Rs.50 lacs was imposed on petitioner No.2 and penalty of Rs.10 lacs each was imposed on petitioners No.3 and 4, Directors of petitioner No.1. According to the petitioners, on the basis of the same very bills of discounting, a separate show cause notice was also issued to the said M/s. Globe Synthetics Ltd., which resulted in confirmation of demand of over Rs.3 crores, by virtue of an order, dated 5 February 2001, by the Commissioner of Central Excise, New Delhi.

(3.) All the four petitioners challenged the orders passed by the Commissioner of Central Excise before the Tribunal along with an application for stay of the afore-noted demands. As noted above, by the impugned order the Tribunal has directed petitioner No.1 to deposit Rs.20 lacs, as a condition precedent for entertaining all the four appeals, failing which the appeals are liable to be dismissed. Hence the present writ petition.