DATOON AND DATOON INDIA Vs. CEGAT

JUDGEMENT

(1.) The petitioner, by the instant writ petition, has impugned the order dated 6-12-1994, passed by the Tribunal on petitioner's application for stay and waiver.

(2.) The relevant facts, necessary for the disposal of the writ petition may be stated. The petitioner is in the business of manufacture of 'Pan Masala' and tobacco, A licence for dealing in the said trade has been granted to the petitioner. The facts disclosed in the file reveal that on 27-6-1990 a team of Central Preventive Officers, Central Excise, Kanpur made a surprise visit in the premises where the petitioner does manufacturing of the above mentioned commodity. They found certain discrepancies and also evasions. Consequently a notice was issued to the petitioner and the Collector, Central Excise, Kanpur by order dated 25-11-1993 confirmed demand of the duty amounting to Rs. 3,68,718/- on 'Pan Masala' and Rs. 56,535/- on branded Zarda. He also imposed penalty of Rs. 25,000/-. The petitioner preferred an appeal under Section 35B of Central Excises and Salt Act before the Customs, Excise & Gold (Control) Appellate Tribunal, New Delhi. Alongwith the appeal, an application for stay and waiver was moved. The Tribunal has disposed of the petitioner's said application by order dated 6-12-1994. The Tribunal has accepted the petitioner's case of financial hardship and, accordingly, modified the condition of pre-deposit of the entire duty and penalty imposed in the order passed by the Collector by providing that the petitioner should deposit a sum of Rs. 2,00,000/- towards duty which may be roughly 50% of the total amount of the duty and further directed to deposit a sum of Rs. 5,000/- towards penalty. The said amount was ordered to be deposited within a period of two months and its compliance has been ordered to be reported to the Tribunal on 10-2-1995. It is against this order of the Tribunal that the instant writ petition has been preferred.

(3.) I have heard the learned counsel of the petitioner as well as the learned Standing Counsel on behalf of the Central Government.