GYPERATE BUILDING INDIA LTD. Vs. CESTAT, CHENNAI

JUDGEMENT

(1.) Heard the learned Counsel for the appellant and the learned Counsel appearing for the second respondent. This appeal is filed against the order of the Customs, Excise & Service Tax Appellate Tribunal, by which, the Tribunal on the applications for waiver of pre-deposit of duty of Customs of Rs. 2,46,16,126/- toy the applicants who are the company as well as Directors, respectively, has directed the applicants to make pre deposit of Rs. 80,00,000/- (Rupees eighty lakhs only) within eight weeks and on such deposit, the waiver will operate in respect of the balance duty amount as well as penalty.

(2.) The applicants, in the applications filed in support of the waiver applications while filing appeal, against the order of the Commissioner of Customs dated 26-10-2009 has stated that the imposition of mandatory penalty of Rs. 2,46,16,126/- and the consequential obligation of pre deposit of duties and penalties causes undue hardship, since the applicant company undergoes financial crisis. It is also stated that even though the installation of machineries were made, the applicants are not able to start production due to technical problems and loss incurred. It is with that plea, pending appeal, against the order of authority, viz., Commissioner of Excise, applications for waiver came to be filed.

(3.) The Tribunal while considering the same, has taken note of the fact that the applicants company had imported plant, Machinery and chemicals for manufacture of calcined walls from various suppliers to Manufacture rapid wall products in India and the erection, commission and installation of the two plants by the Australian company has been admitted by the Managing Director of the Company, however, taking note of the fact that the company is facing financial hardship due to accumulation of loss to the extent of Rs. 11 crores, has passed the impugned order for pre-deposit of a sum of Rs. 80 lakhs, as against the amount of Rs. 2,46,16,126/-