KANPUR PESTICIDES AND CHEMICAL PVT LTD Vs. CEGAT

JUDGEMENT

(1.) Petitioner M/s. Kanpur Pesticides & Chemical Private Limited is a unit engaged in the manufacture of dyes falling under Chapter 32 of the Central Excise Tariff Act, 1985 (hereinafter called as the Act) and is duly registered with the Excise Department. On 16-2-1995 the petitioner's premises was surveyed by the Central Excise Officers who seized certain documents/records revealing evasion of excise duty to the tune of Rs. 1.53 crores during the period assessment years 1990-91 to 1994-95. The Director as well as the Manager of the Company admitted mis-declaration and undervaluation of the goods and evasion of excise duty under the Act and undertook to pay the amount. It further appears that the Company paid the amount of Rs. 1.53 crores. Thereafter a show cause notice dated 12-11-1996 was served upon the petitioner calling upon as to why the petitioner and its Director may not be penalized for evasion of the excise duty under various provisions of the Central Excise Act and the Rules. The petitioner and its Director made reply to the show cause. The Adjudicating authority on consideration of the submissions made on behalf of the petitioner and its Director imposed penalty of Rs. 20 lacs on the petitioner and Rs. 2,50,000/-upon its Director. Feeling aggrieved by the order of the Adjudicating authority an appeal was filed before the Customs, Excise & Gold (Control) Appellate Tribunal, New Delhi along with an application under Section 35F of the Act for Stay-cum-Waiver. That application was disposed of by the Tribunal vide order dated 12th May, 1998. The Tribunal partly allowed the application and directed the petitioner to pay Rs. 5 lacs and its Director was directed to deposit Rs. 50,000/- as pre-condition to the hearing of the appeal. Thereafter an application for modification of the order dated 12-5-1998 was moved by the petitioner which was rejected vide order dated 16-9-1998. The petitioner did not comply with the order passed on the application of Stay-cum-Waiver. The appeal was, therefore, dismissed by order dated 5-1-1999 as contained in Annexure-6 to the writ petition. Thereafter the petitioner moved an application for recalling of the final order dated 5-1-1999 which was dismissed by the Tribunal vide order dated 6-12-1999.

(2.) By the present writ petition, the petitioner Company has prayed for quashing the orders dated 6-12-1999, 5-1-1999 and 12-5-1998 by issuing a writ of certiorari and further to direct the Tribunal to restore the appeal and decide the same on merits without insisting upon any pre-deposit by issuing a writ of mandamus.

(3.) Sri A.P. Mathur, learned Counsel for the petitioner and Sri G.R. Gupta, learned Standing Counsel appearing for the respondents have been heard at length.