CHAWLA ENTERPRISES LTD Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) On September 15, 2000, The Commissioner, Central Excise (Adj.) raised a demand for Rs. 4,78,37,028/- by way of payment of excise duty. A penalty of 100%, viz. Rs. 4,78,37,028/- was also imposed. Interest at the rate of 20% was also levied. Still further, an additional penalty of Rs. 30,00,000/- each was imposed on the two partners, viz. petitioner Nos. 2 and 3. Another penalty of Rs. 1,00,04,000/- was also imposed.

(2.) Aggrieved by the order, the petitioners approached the Customs, Excise and Gold (Control) Appellate Tribunal. Vide order dated January 3, 2001, the Tribunal directed that petitioner No. 1 shall deposit rupees one crore towards payment of the excise duty and Rs. 20 lacs towards penalty. Petitioner Nos. 2 and 3 were directed to deposit Rs. 5 lacs each towards penalty. Aggrieved by the order of the Tribunal, the petitioners have approached this Court through the present writ petition. It is alleged that the demand is wholly arbitrary. The order of the Tribunal requiring the petitioners to deposit an amount of Rs. 1,30,00,000/- imposes an unbearable burden and virtually denies the right to file an appeal against the impugned levy. On this basis, it is prayed that the order of the Tribunal be quashed.

(3.) Notice of motion was issued. A written statement has been filed.