MUDHAR PLYWOOD PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Present writ petition is directed against an order dated 3rd July, 2009 passed by the Customs Excise & Service Tax Appellate Tribunal, New Delhi (hereinafter referred to as, the Tribunal'), whereby an application of the petitioner seeking waiver of pre-deposit, necessary for hearing of the appeal, has been decided and the petitioner company, in lieu of the amount of Rs. 15,44,883/- towards central excise duty and equal amount towards penalty, has been asked to pay Rs. 10.00 lakh towards central excise duty and Rs. 10.00 lakh towards penalty.

(2.) The Joint Commissioner, Central Excise -V, Rohtak, being the adjudicating authority, confirmed the demand of Rs. 15,44,883/- towards central excise duty along with recovery of interest under Section 11B of the Central Excise Act, 1944 (hereinafter referred to as, the Act') against the petitioner company. The authority had also imposed equal amount as penalty on the petitioner company under Section 11AC of the Act read with Rule 25 of the Central Excise Rules, 2002 (hereinafter referred to as, the Rules'). The penalty of Rs. 1.00 lakh each was also imposed upon Mr. Ajay Aggarwal and Mr. Mukesh Aggarwal under Rule 26 of the Rules. This order was upheld by the Commissioner (Appeals).

(3.) The Tribunal, while disposing of the application, seeking waiver of pre-deposit, ordered the company to pay Rs. 10.00 lakh towards duty and Rs. 10.00 lakh towards penalty within eight weeks from the date of the order and posted the case for 7th September, 2009 to await compliance report. Pre-deposit of the balance amount of duty, interest and penalty was waived off till disposal of the appeals.