HIMATSU BIMET LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) CHALLENGE in this petition is to the order of the Tribunal dated 9 -9 -2010 dismissing the request of the petitioner of waiving the amount of pre -deposits in the following factual background. The petitioner -company is carrying on the business of manufacturing of bi -metric bearing and by -metal strips. The petitioner also has sister concern like Nova Bimetal Technologies Private Limited. The products manufactured by the petitioner is manufactured by it, using steel and copper alloy powder. It is the say of the petitioner that whenever the petitioner desires to export its product the same is sold to its sister concern, which started its manufacturing activity at Silvasa in March, 2004. Other companies namely Resident Data India Limited (RAIL for short) and La Fabrica are engaged in manufacturing of machinery as well as for reconditioning of the machines respectively. On 24th, 25th and 26th September, 2005, the petitioners factory and residential premise of the Manager were searched and various documents were seized. Statement of the Managing Director was recorded on 16 -11 -2005 and his statement was also recorded on 4 -1 -2006. A letter on 18 -11 -2005 was sent to the Commissioner by the Managing Director stating therein that the details furnished by way of the statements was under duress and pressure. There was an arrest of Managing Director soon after recordance of his statement on 4 -1 -2006.

(2.) AFTER an extensive investigation, which included recording of statements of various purchasers and visit of premises of various customers, a show cause notice was issued on 19 -9 -2006 by Commissioner, Central Excise and Customs, Rajkot. This was duly adjudicated and duty demanded by way of the show cause notice was confirmed on the ground of less quantity found during the visit to the factory and the clandestine removal of scrap on issuance of parallel invoices and also on the ground of issuance of invoices in the name of the sister concerns. Thus, the total amount of duty along with penalty of huge amount was imposed to the tune of Rs. 1,40,09,670/ -.

(3.) AGGRIEVED by the impugned order, the petitioner sought modification by moving application for modification of the said order and the Tribunal rejected the said application and confirmed its earlier order by its decision dated 31 -1 -2011. On 29 -3 -2011, the Tribunal dismissed the appeals for non -compliance of the provisions of Section 35F of the Central Excise Act, 1944 read with the stay order. Aggrieved by the impugned order, challenge is made in the present petition.