IISCO Vs. COMMISSIONER OF CENTRAL EXCISE, BOLPUR

JUDGEMENT

(1.) THIS is an application by M/s. IISCO Ltd. for waiver of pre -deposit of penalty amounting to Rs. 2.5 Crores imposed by the Commissioner under the impugned order on account of clearing the excisable goods without having sufficient balance in PLA.

(2.) SHRI R.N. Das, ld. Sr. Advocate, submitted that the appellants are paying very huge amount of revenue to the Government every year and some time goods were cleared though the money deposited in PLA was less than the amount of duty involved but which had been made good immediately; that in the past also, such cases had happened and as a result of which they had sought accommodation from the Government; that consequently since 2000, the provisions of Central Excise Rules have been amended allowing the payment of duty on fortnightly basis. He also submitted that in the past against the Stay Order passed by the Tribunal directing them to deposit some amount towards penalty, they had moved the Honble High Court and the Honble High Court had granted them the stay. Finally, he relied upon the decision of the Honble Calcutta High Court in the case of reported in 2001 (132) E.L.T. 557 wherein it was held that where the scheme under Section 17 of Sick Industrial Company Act is under preparation, the recovery of duty by the Customs Department should not be proceeded with.

(3.) OPPOSING the prayer, Shri A.K. Mondal, ld. DR, submitted that no excisable goods can be removed without payment of appropriate duty from the factory. That it is not the first instance when the appellants have contravened this provision and cleared the excisable goods without payment of duty. He also submitted that the total amount involved in the present matter is more than Rs. 2 Crores and as such the penalty imposed by the adjudicating authority is justified.